Bitcoin (BTC) is on the cusp of a new all-time high as cryptocurrencies rally to start October.
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BTC is up 2% to $123,026 in afternoon trading on Oct. 3. That’s within striking distance of its record high of slightly more than $124,000, that was set in August of this year. The largest cryptocurrency has risen sharply in recent days after languishing below $110,000 for much of September.
October is typically the best month of the year for Bitcoin, leading many crypto investors to call it “Uptober.” Bitcoin has risen 12% over the past five trading days. Investors appear to be flocking to cryptocurrencies with the U.S. government shutdown as they seek safe haven assets, leading some analysts to say that BTC is living up to its reputation as “digital gold.”
This Time Is Different
In a note to clients about Bitcoin, Standard Chartered (STAN) said that “the shutdown matters this time around… During the previous Trump shutdown (22 Dec 2018 to 25 Jan 2019) Bitcoin was in a different place than now, so it did little.”
Standard Chartered expects a new high for Bitcoin very soon and that the cryptocurrency will ultimately hit $135,000. Cryptocurrencies are also getting a lift as expectations grow for the U.S. Federal Reserve to deliver two more interest rate cuts by year’s end.
Is Bitcoin a Buy?
Most analysts don’t offer ratings or price targets on Bitcoin. So instead, we’ll look at the three-month performance of BTC. As one can see in the chart below, the price of Bitcoin has risen 9.82% in the last 12 weeks.
