Why did the cryptocurrency market rise today?
The prices of Bitcoin and Ethereum have risen, and the market has rebounded from yesterday's sharp decline, but the cryptocurrency market is still under pressure.
Summary
After the interest rate cut decision was announced yesterday, the cryptocurrency market rebounded.
The Federal Reserve has signaled a more cautious approach to inflation, suggesting that there will be no further interest rate cuts.
Due to investors reassessing risks, the outflow of funds from spot cryptocurrency ETFs reached $600 million.
Despite today's increase, Bitcoin will face its 'Red October' seven years later.
After a week of continuous decline, the cryptocurrency market finally rebounded. Bitcoin has returned above $109,000, Ethereum has also regained the $3,800 level, and other major altcoins have seen slight increases. However, the deterioration of the macroeconomic outlook casts a shadow over this slight rebound, and Bitcoin is experiencing its first 'Red October' in seven years.
On Friday, October 31, Bitcoin (BTC) rose by 1.7%, reaching $109,225, rebounding from a previous day's sharp decline. Ethereum (ETH) also recorded a similar increase, rising by 1.55% to $3,826, while most other cryptocurrencies also saw gains.
"Uptober" performance has been disappointing, and sentiment in the cryptocurrency market is low.
Despite the Federal Reserve announcing a 25 basis point rate cut, Bitcoin's price still dropped to a weekly low of $106,000 the previous day. While low interest rates are favorable for the cryptocurrency market, most traders had already anticipated this.
Meanwhile, Federal Reserve Chair Jerome Powell expressed a more cautious stance on the inflation outlook, suggesting that the rate cut in October might be the last one this year. The shift in market sentiment coincided with a significant outflow of ETF funds. As of Friday, the weekly trading volume for Bitcoin and Ethereum ETFs reached $600 million, indicating a decrease in the risk appetite of the cryptocurrency market.
This week, sentiment in the cryptocurrency market was already low, and this news undoubtedly makes things worse. "Uptober" (the rising trend seen in past Octobers) did not materialize, with Bitcoin down 15% from its historical high on October 6. The decline for the month reached 6.5%.
\u003ct-63/\u003e\u003cc-64/\u003e
\u003cc-45/\u003e
\u003cc-38/\u003e
For continuous updates, please follow \u003cm-51/\u003e. Esteemed traders, leave your opinions in the comments section.