Bitcoin Surges: $118K Target in Sight Amid US Economic Shifts
Cryptocurrency enthusiasts are closely watching as Bitcoin (BTC) pushes towards a significant milestone. The leading digital asset currently eyes its highest levels in six weeks. This upward movement occurs despite looming economic uncertainties. Notably, recent weak US jobs data appears to fuel a broader crypto market rally, driving both digital and traditional risk assets higher. Experts are increasingly calling the US government shutdown a ‘non-event’ for markets, suggesting that any dips present clear ‘buy opportunities’ for investors.
Bitcoin Price Targets New Highs
Bitcoin’s momentum remains strong. The asset recently sought six-week highs following Wednesday’s Wall Street open. Data from Crypto News Insights Markets Pro and TradingView showed BTC/USD reaching $117,713. This move brought the pair within $150 of surpassing its September maximum. Achieving this would mark its highest level since August 17.
Popular trader and analyst Rekt Capital offered insights. He summarized on X, “Bitcoin is trying to breakout from its Monthly Range already on the first day of the new month of October.” This indicates a potential shift in market dynamics. The current Bitcoin price action suggests a strong bullish sentiment as October begins.
US Jobs Data Fuels Crypto Market Rally
A significant factor contributing to the current market buoyancy is recent economic data. US private-sector employment numbers came in significantly below expectations. Estimates had projected a gain of 45,000 jobs for September; however, the actual figures turned negative. Historically, labor market weakness acts as a tailwind for crypto assets. It heightens the odds of future interest rate cuts, consequently increasing capital inflows into riskier assets like Bitcoin.
The latest data from CME Group’s FedWatch Tool reinforces this outlook. Markets are overwhelmingly betting on the Federal Reserve cutting rates by 0.25% at its October meeting. This expectation boosts confidence across the cryptocurrency landscape, signaling potential for further growth.
Fed target rate probabilities for October FOMC meeting (screenshot). Source: CME GroupBTC $118K Target: Analyst Perspectives
Traders and analysts closely monitor Bitcoin’s journey toward the $118K target. Fellow trader Jelle described BTC price action as “pushing through the resistance like it isn’t even there.” He further told X followers, “One last thing to ‘worry’ about: a sweep of the September highs. Clear those, and the bears will have very little leg to stand on. Higher.”
Meanwhile, other analysts focus on potential support levels. Trading account Daan Crypto Trades identified $112,000 as “key short-term support.” He noted, “Ideally don’t want to see price re-visit that.” The ongoing attempt to break through a channel indicates critical levels for bulls to maintain. A proper breakout with daily closes above this channel could signal readiness for new highs.
BTC/USD chart. Source: Jelle/XUS Government Shutdown: A Market Non-Event
The new US government shutdown has surprisingly failed to dampen the buoyant mood across risk assets. Both the S&P 500 and Nasdaq Composite Index opened modestly higher. Gold, a traditional safe haven, consolidated after hitting its latest all-time highs earlier in the day.
QCP Capital, a trading company, commented on the situation. They stated in their latest “Asia Color” research post that the shutdown should be a “market non-event beyond data delays and headline noise.” They emphasized that essential services continue, back-pay limits income effects, and past episodes have not derailed risk assets. This assessment provides a crucial perspective for crypto market analysis during times of political uncertainty.
BTC/USD vs. S&P 500 one-day chart. Source: Crypto News Insights/TradingViewInterest Rate Outlook and Investment Strategy
QCP Capital highlighted historical precedents. During the 2018 shutdown, for instance, the S&P 500 ended 10% higher. Given Bitcoin’s elevated beta to equities, they concluded that “shutdown-related dips” should be viewed as “buy opportunities” rather than chasing gap-ups. This proactive approach aligns with the prevailing optimistic sentiment surrounding the interest rate outlook.
In conclusion, Bitcoin demonstrates remarkable resilience and bullish potential. Weak US jobs data and expectations of interest rate cuts create a favorable environment. The market appears to largely disregard the US government shutdown. Investors are advised to conduct their own research when making investment decisions, as all trading involves risk. This article does not contain investment advice or recommendations.
