Bitcoin surged to $86,559 as the Nasdaq reached a new high, reflecting strong investor sentiment amid a positive market trend.
Summary
- Bitcoin surged to approximately $86,559 on Tuesday, reflecting a 12.2% weekly increase after breaking through a resistance level.
- The Crypto Fear & Greed Index is at 79, indicating a strong sentiment of "Greed" among investors.
- The Nasdaq Composite reached a new intraday high, buoyed by gains in semiconductor stocks.
On Tuesday, Bitcoin climbed past the $86,500 threshold, marking a significant recovery after being constrained by resistance since early September. This rally has pushed the total cryptocurrency market capitalization beyond $3 trillion, with the Crypto Fear & Greed Index sitting at 79, signifying a strong "greed" sentiment. Meanwhile, the Altcoin Season Index stands at 49, indicating Bitcoin's continued dominance even as altcoins gain momentum.
This upward movement coincides with a favorable trend on Wall Street, where the Nasdaq Composite achieved a record high on Monday, rising 2.26%—its best performance since June—thanks to a surge in AI-related stocks. Intel shares jumped 12%, while AMD increased by about 10%, surpassing a $1 trillion market cap. The semiconductor sector has seen its longest winning streak since April.
In Tuesday's trading, the Nasdaq rose by 0.4%, establishing a new intraday peak, while the S&P 500 remained stable. Oil prices drew significant attention as Brent crude dipped below $98 per barrel, and WTI fell under $93, marking their lowest levels since early September. This decline followed reports of Iran's proposal to reopen the Strait of Hormuz if the U.S. relaxes sanctions.
During the U.N. General Assembly, President Donald Trump expressed optimism about a potential deal with Iran shortly after the upcoming midterm elections, while Saudi Arabia aims to resume its East-West pipeline operations by the weekend.
The Federal Reserve recently raised its benchmark interest rate by 25 basis points to a range of 3.75%-4%, the first increase since 2023, driven by rising inflation, particularly in gasoline prices. Despite this rate hike, the Fed continues purchasing short-term Treasury bills to maintain liquidity in the banking system, a strategy that diverges from its interest rate policy and helps mitigate the tightening effects of the rate increase.
Currently, the Fed's bond holdings are approximately $6.7 trillion, significantly down from a peak of $9 trillion in 2022, but they are no longer decreasing.
Chart analyses show that Bitcoin's recent performance supports its ongoing rally, having surpassed previous resistance levels and now poised to test the $90,000 mark. The cryptocurrency is experiencing a golden cross, a bullish indicator where the 50-day moving average crosses above the 200-day moving average.
If this momentum persists, Fibonacci extensions indicate potential price targets of $90,763 and $95,074 for Bitcoin. However, if the price drops below $79,673, it could retreat to key support levels at $75,436 and $73,617.
Market sentiment on prediction platforms reflects these trends, with a 48% probability that Bitcoin will reach $90,000 this month, compared to a 25% chance for $92,500.
Altcoins are also seeing positive movement, with XRP rising to $1.57, Solana increasing by 18.2% over the week, and Zcash up 36.7% at $1,551. Among the top 100 cryptocurrencies, 97 have recorded gains in the past week.
The Federal Reserve's next policy meeting is set for October 27-28, where it will be revealed whether the September rate hike was a one-off response to oil market fluctuations or the start of a series of increases planned for the year, with the median federal funds rate projection for 2026 set at 4.1% by year-end.
Disclaimer
The views expressed here are for informational purposes only and should not be interpreted as financial or investment advice.
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