Will Uptober Crypto Recover as BTC Price Awaits FOMC Rate Cut?

Uptober Crypto: Will Bitcoin Rise After FOMC, US-China Trade Deal?

Is Uptober Crypto really over, or does Bitcoin still have a chance to surprise us? After years of strong October rallies, this month has been different. 

The market saw a sharp drop, making it the first red October for Bitcoin since 2018. But many traders believe Uptober isn’t done yet and a few key events could still turn things around.

Source: X (formerly Twitter) 

Why Uptober Crypto Still Has Hope

Even though prices have dropped, several big events this week might bring the green back to Uptober Crypto.

First, the Federal Reserve’s FOMC meeting could bring a 25-basis-point rate cut. If that happens, it usually helps risk assets like crypto because investors move money away from traditional savings into higher-return assets.

Then, tech giants Microsoft, Google, Meta, Apple, and Amazon are all reporting their quarterly profits. Together, these companies constitute a massive portion of the U.S. stock market, and if they have good results, it would improve confidence in stocks and crypto alike. 

And finally, a potential meeting of U.S. President Trump and China's President Xi to assuage global trade tensions. In case of a successful meeting, markets should recover fast.

Market Mood Is Gradually Improving

Despite the red candles, Uptober Crypto is showing some points of recovery. The total crypto market cap has risen 4.8% in the past month, and Bitcoin has risen over 4% this week. Social media discussions regarding the Uptober rally, rose more than 118% in the past 24 hours, showing that traders are still keeping their eyes on it.

Big news also emerged from JP Morgan, which will be issuing BTC and ETH-backed loans. This move speaks to the manner in which conventional banks are slowly embracing digital assets. 

Adding to all of this, discussions of the U.S. constructing a strategic reserve of Bitcoin have fueled even more bullish aspirations. If it is true, it could reflect long-term government support for Bitcoin as an actual financial asset.

Caution Is Still Important

All of this excitement aside, investors must be careful. The derivatives market in the form of futures and perpetuals is sizzling once more, with open interest up by 2.75%. That is a sign of growing confidence but also suggests that the market could swing violently if traders get cleaned out.

At the moment, the value of Bitcoin is around $115,400, and there is solid support at $115,000. If BTC holds above that, it could go higher. But a breakdown below could cause instant sell-offs. As always, be smart enough not to blindly jump into the hype.

Final Thoughts

With only a few days remaining in October, It may still have a surprise or two in store for all of us. From the Fed rate announcement, tech earnings, to U.S.-China trade negotiations, the coming week is packed with events that can influence the direction of the market.

For the moment, traders need to remain vigilant, keep their cool, and watch the data, not the hype. Uptober is not yet over, and Bitcoin could still go green before November starts.

Disclaimer: This article is for information purposes only and not a financial advice, kindly do your own research before investing.