Crypto markets have rallied to an all-time high of $4.24 trillion in market capitalisation, as investors increased their bets that the Federal Reserve will further cut interest rates at their upcoming October 29th meeting following weaker-than-expected employment data from the US.
Although the current government shutdown prevented the release of the main non-farm payrolls report, we did see ADP figures, which provide a measure of job changes in the private sector, wildly miss forecasts posting a decrease in 32,000 jobs where analysts had been anticipating a 50,000 increase.
Spot bitcoin ETFs saw $3.24 billion in net inflows last week, the second-largest week of inflows ever, helping propel the OG cryptoasset’s price to a new-all-time high of $125,736.
Similarly, Ethereum spot ETFs also saw strong inflows.
With us now in October, dubbed ‘Uptober’ in the crypto community as it has historically been a month where crypto markets have performed strongly, current sentiment in the markets is risk-on due to anticipation of further interest rate cuts. Simon Peters, Crypto Analyst at eToro, notes that there is every chance we could see the rally continue and new all-time highs being made in bitcoin, Ethereum and other major capitalisation cryptos before the month is out.
We wait to see.
