The price of Bitcoin has recently risen above $64,000, igniting optimistic views that the anticipated ‘Uptober’ rally is on the horizon. A number of macro factors are set to unfold this week, which market participants need to keep an eye on as these could influence the crypto landscape.
Key Macro Factors To Monitor As Bitcoin Hits $64,000
Important macro factors to note this week include the retail sales figures for September, which are set to be published on October 17. This data, which measures consumer demand for goods, is crucial as it sheds light on the current economic conditions in the United States. These figures also play a role in guiding the US Federal Reserve regarding potential interest rate adjustments.
On the same day, the Philadelphia Fed manufacturing index will be disclosed, providing a glimpse into the growth of the manufacturing sector. Additionally, the September housing starts information will be available on October 18. This economic information is particularly relevant amid ongoing speculation about whether the Federal Reserve will implement rate cuts of 25 or 50 basis points or if there will be any changes at all.
Furthermore, it will be vital to pay attention to the 11 engagements involving Fed speakers this week. Federal Reserve Governor Christopher Waller is slated to speak on October 14, followed by Governor Adriana Kugler on October 15. The perspectives shared by these officials may provide clarity about the Fed’s current stance, irrespective of whether it leans towards a dovish or hawkish approach ahead of the forthcoming November FOMC meeting.
In addition, several companies within the S&P 500, including prominent financial institutions such as Morgan Stanley, Goldman Sachs, and Citigroup, are scheduled to release their earnings reports this week. Given Bitcoin’s historical correlation with the stock market, favorable earnings results from these firms could create a positive outlook for Bitcoin and potentially uplift the broader crypto market.
What Lies Ahead for Bitcoin Following Its Surge to $64,000
With Bitcoin reaching the $64,000 mark, questions arise regarding whether this indicates a return to bullish conditions for the leading cryptocurrency. According to crypto analyst Ali Martinez, Bitcoin must convincingly break above $66,000 to validate a bullish reversal.
Martinez suggests that Bitcoin may initially rise to $66,000 only to retreat below $60,000 before dipping further to around $57,000, thus setting the stage for a subsequent surge towards $78,000. A move towards $78,000 would be particularly noteworthy as it would establish a new all-time high for Bitcoin, considering its current peak stands at $73,000.
Crypto analyst CrediBULL Crypto also suggests it may not be the right time to adopt a bullish stance on Bitcoin. He forecasts that Bitcoin could see a drop below $50,000 before embarking on a journey towards new all-time highs.
As of this writing, Bitcoin is trading at approximately $63,900, reflecting an increase of nearly 2% over the past 24 hours, based on CoinMarketCap data
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