Just four days into October and the latest Bitcoin news is focused around the global-leading digital asset surpassing $20,000 USD per coin for the first time so far in this still early Q4. BTC, the world’s largest digital currency by market capitalization, reached above $20,000 last on September 30, but only for a brief time before trading sideways for days. That is until the price surge on the early morning of Tuesday, October 4 sent it back over the closely watched price level.
At the time of writing, the highest price Bitcoin has reached so far has been $20,180. BTC first broke above $20k shortly after 4 am EST, US, and then dipped below for the next two and a half hours, before cracking the price level again for a moment. The price of Bitcoin then broke above again three hours prior to the time of writing and has surged since, remaining around the $20,100 level.
Potential Reasons Why Bitcoin Price May Be Moving
There has been a good deal of speculation around the anticipated price performance of BTC and some larger altcoin assets, in this final quarter of the calendar year. Historically Q4 has been the best quarter for Bitcoin performance, and many expert analysts agree that there are signs that the same could hold true this year as well.
There have been concerns about most of the global financial markets all year, as 2022 has been mostly bearish for the US stock market and the global cryptocurrency market. The hope shared by most crypto experts and market professionals is that this could be another positive Q4 performance for BTC, which can help explain the excitement over the price rally above $20k.
Other Contributing Factors To The BTC Price Jump
The recent surge has other potential contributing factors which could have played a role. One important thing to note is that Bitcoin’s price hike came behind a strong showing in the US stock market on Monday, just a day prior. Typically, when the stock market yields a green day, it can result in an influx of liquidity, often from profits, which investors have sometimes chosen to invest in the crypto market. This is referred to as the market cycle, which positions stocks first, before crypto, in relation to the macroeconomic capital flow into globally traded markets. In essence, profits from stocks can be a good indicator for a potential push for Bitcoin, which can be a potential indicator for a jump in altcoin performance. Alternatively, when the stock market is slow or stagnant, which has been the case throughout the majority of the first three quarters of 2022, the flow of currency can be the same, slow, which can reflect bearish market sentiments.
The Dollar Index (DXY) dropped below 112 on Monday and concerns in Europe over Credit Suisse Bank issues, are among other potential influences that helped create the Tuesday BTC surge also. As the dollar struggles, investors often look to hedge the fiat currency by trading into alternative currencies. It seems that could be the case, with gains recorded in the S&P 500, Nasdaq Composite Index, oil and silver on Monday, and Bitcoin, ETH and other digital currencies on Tuesday. The latest Ethereum crypto news reveals the largest altcoin on the global market also surged around the same time as BTC, shortly after 4 am, breaking above the $1,350 mark it had traded below since September 30.