For the first time since August of this year, Bitcoin’s (BTC) price has risen above $120,000.
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The price of BTC was up more than 3% on Oct. 2, pushing it to $120,500, its highest level in nearly two months. After hitting an all-time high of just over $124,000 in August, Bitcoin’s price slumped throughout September and fell below the key support level of $110,000.
However, a new month appears to have brought renewed optimism around Bitcoin and other cryptocurrencies such as Ethereum (ETH) and Dogecoin (DOGE), which are also recovering after sliding lower in September. October is traditionally the best month of the year for crypto, leading some analysts to label it “Uptober.”
Catalysts
Analysts say Bitcoin and other cryptocurrencies are getting a boost as investors seek safety amid the shutdown of the U.S. government. Additionally, digital assets are expected to get a boost in coming months as markets bet on two additional interest rate cuts from the U.S. Federal Reserve by year’s end.
Plus, individual retail investors, hedge funds, and institutions such as university endowments all seem to be returning to cryptocurrencies at the same time, a rising tide that is lifting all boats. Capital is also again flowing into cryptocurrency exchange-traded funds (ETFs).
Market data shows that Bitcoin ETFs recorded their largest inflows since Sept. 10 of this year on Oct. 1, with $675.8 million of capital being plowed into the investment vehicles.
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 8.74% in the last 12 weeks.
