Bitcoin (BTC), the top cryptocurrency, has triggered a significant recovery in the wider cryptocurrency market, achieving a 5% gain during Wednesday’s trading session to reclaim the $117,000 level.
This upward trend has benefited major altcoins such as Ethereum (ETH), XRP, Solana (SOL), and Binance Coin (BNB), with average increases of around 3%, possibly indicating the start of a new altcoin season.
Crypto Prices Rise Amid US Government Shutdown
The rise in crypto prices coincided with political events as the US Senate’s inability to pass a temporary funding bill led to a government shutdown shortly after midnight on Wednesday.
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Such uncertainty often prompts investors to explore alternatives to the US dollar, with cryptocurrencies increasingly seen as a safeguard against economic instability. On Wednesday, the dollar held steady against a range of other currencies, further enhancing the appeal of digital assets.
Historically, October has been a propitious month for Bitcoin, with the cryptocurrency closing in positive territory 10 of the past 12 years. Joel Kruger from LMAX Group also observed that Q4 has historically been the strongest seasonal period for cryptocurrencies, contributing to the positive sentiment. Nonetheless, not all analysts share this optimistic perspective.
Extended Bull Cycle For Bitcoin?
Ash Crypto expressed caution, indicating that the current rally could be a precursor to a more substantial downturn, predicting a possible retrace to about $106,000 for Bitcoin and near $3,800 for Ethereum.
This expected correction, he suggests, might liquidate excessively optimistic positions, especially among retail investors. He anticipates that this uncertainty could last until mid-October, possibly leading to a market rebound when bearish sentiment peaks.
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Conversely, Lark Davis has suggested a more bullish long-term view, proposing that the current cycle could extend into 2026 rather than reaching its peak in the fourth quarter as traditionally anticipated.
The general sentiment indicates that if the market can withstand short-term volatility, a major rally might occur, potentially elevating Bitcoin to prices between $150,000 and $180,000, with Ethereum rising between $8,000 and $12,000.
Davis believes such a scenario, which could result in significant gains of 53% for BTC and 200% for ETH respectively, could spark a major altcoin season, with some assets possibly skyrocketing in value by 10 to 50 times within just a few months.
At the time of writing, Bitcoin is trading at $117,130, having gained nearly 8% within the month. This places the leading cryptocurrency just 5.7% away from its all-time high of $124,100.
Featured image from DALL-E, chart from TradingView.com
