Bitcoin started October modestly, partly due to statements by Jerome Powell, the chairman of the US Federal Reserve. Powell tempered expectations for aggressive interest rate cuts in the remainder of 2024. In addition, the start of China’s Golden Week has a noticeable impact on financial markets.
Quiet week for Bitcoin?
China’s annual Golden Week, which celebrates the National Day, tends to lower global trading volume. Many Chinese traders and companies shut down their activities during this holiday week, and the crypto market is also affected. Analysts predict a quiet week for Bitcoin and even warn of a possible correction of 5 to 10 percent.
The calm in the crypto market coincides with a series of important macroeconomic events. A debate will take place on October 1 between American vice presidential candidates Tim Walz and JD Vance. The US new jobless claims report is due on October 3, followed by employment and unemployment figures on October 4.
Meanwhile, the crypto market is showing signs of increasing volatility. The implied volatility (IV) of short-term contracts increases, indicating expected short-term price movements. Additionally, $5 billion in options contracts expired last Friday, which could cause increased market fluctuations this week.
Bitcoin heading for a correction?
Analysts at Bitfinex warn that Bitcoin’s recent surge may have reached a short-term high. Although Bitcoin has regained important levels, signals point to a temporary stabilization in the market. The rise in open interest in Bitcoin futures above $35 billion may suggest an overheating of the market.
In short, the first week of October looks to be modest for Bitcoin. After this week there will be more clarity about what we can expect for the rest of the month. In the short term, however, Bitcoin appears to be taking a step back.
Source: https://newsbit.nl/bitcoin-koers-kan-met-5-10-dalen-uitspraken-van-powell-en-chinas-golden-week-beinvloeden-markt/
