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Bitcoin Nears $120,000 Amid Near-Certain Fed Rate Cut and Liquidity Tailwinds | US Crypto News

Welcome to the US Crypto News Morning Briefing—your important rundown of a very powerful developments in crypto for the day forward.

Grab a espresso as a result of markets are bracing for a pivotal October with shifting alerts, quiet liquidity whispers, and uncommon safe-haven flows. The temper is tense, the chances are tilting, and Bitcoin (BTC) finds itself as soon as once more on the middle of hypothesis.

Crypto News of the Day: Bitcoin Approaches $120,000 as Markets Brace for Near-Certain October Rate Cut

Bitcoin is trading at $118,746, inching towards the psychological $120,000 milestone, as buyers pile into property seen as beneficiaries of looser financial circumstances.

According to the CME FedWatch Tool, markets now assign a 99% likelihood of an October rate cut, projecting a transfer into the three.75% to 4.00% vary.

The catalyst got here from Wednesday’s ADP National Employment Report, one of many critical labour market data factors buyers have been watching. The knowledge revealed 32,000 personal job losses in September, properly under expectations of a 51,000 achieve and marking the steepest decline since March 2023.

US ADP Employment. Source: Bloomberg Finance

Compounding issues, August’s payrolls have been revised from a reported +54,000 jobs to a -3,000 decline. This means two straight months of contraction for US private-sector employment.

The knowledge and a partial US government shutdown have left buyers blind. Key financial stories from the Bureau of Labor Statistics (BLS), together with Friday’s non-farm payrolls, are suspended. If the shutdown extends, even the CPI report on October 15 could possibly be affected.

Against this backdrop, ETF inflows into Bitcoin continue to underpin demand. However, markets stay weak if the Fed hesitates.

According to TradFi media, Deutsche Bank and ING each flagged the danger of extended shutdown fallout, with Oxford Economics estimating that GDP may shrink by as much as 0.2% per week if closures drag on. Even so, seasonal optimism persists.

Safe-Haven Flows, Liquidity, and the Epstein Angle

While Bitcoin steals the highlight, veteran analyst Ira Epstein highlighted that the liquidity dynamics fueling gold and silver are additionally at play.

In his October 1 metals wrap, Epstein pointed to Fed easing expectations and authorities paralysis as drivers behind inflows to safe-haven property.

“I anticipated that we’d get one thing of a rally in gold and silver,” he said.

However, Epstein famous that warning stays warranted as volatility picks up. He emphasised that bond and be aware markets are additionally catching bids, mirroring broad uncertainty round US coverage knowledge gaps.

For Bitcoin buyers, this hyperlink between liquidity and asset conduct is hanging. The similar tailwinds pushing gold larger are mirrored in crypto’s ascent. The tailwinds comprise a weaker greenback, bond market power, and safe-haven rotation.

Unlike past shutdown cycles, the place volatility usually stayed contained, the intersection of ETF flows and near-certain Fed motion amplifies Bitcoin’s transfer. Still, some warn that the rally will not be invincible.

“A brief closure will most likely appear like a blip for US equities…But a protracted coma and the mass layoffs President Trump is threatening may trigger materials injury,” Fortune reported, citing Oxford’s Ryan Sweet.

That situation may drive the Fed into deeper cuts, nevertheless it may additionally set off risk-off sentiment, which might weigh on high-volatility assets like BTC.

With $120,000 in sight and liquidity tailwinds constructing, October may mark one other defining chapter in Bitcoin’s institutionalization.

This expectation comes because the pioneer crypto behaves much less like a speculative outlier and extra like a macro-safe haven, even when politics and coverage uncertainty cloud the trail ahead.

Chart of the Day

October Rate Cut Odds. Source: CME FedWatch Tool

Byte-Sized Alpha

Here’s a abstract of extra US crypto information to observe at this time:

Crypto Equities Pre-Market Overview

Company At the Close of October 1 Pre-Market Overview
Strategy (MSTR) $338.41 $344.40 (+1.77%)
Coinbase (COIN) $346.17 $352.00 (+1.68%)
Galaxy Digital Holdings (GLXY) $35.83 $37.04 (+3.38%)
MARA Holdings (MARA) $18.61 $19.02 (+2.20%)
Riot Platforms (RIOT) $18.93 $19.20 (+1.43%)
Core Scientific (CORZ) $17.97 $18.24 (+1.50%)
Crypto equities market open race: Google Finance

The submit Bitcoin Nears $120,000 Amid Near-Certain Fed Rate Cut and Liquidity Tailwinds | US Crypto News appeared first on BeInCrypto.

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