On Tuesday, Oct. 28, Bitcoin’s price surged unexpectedly, reaching a peak of $116,200 as traders anticipated the imminent interest rate decision and Donald Trump’s meeting with Xi Jinping.
Summary
- Bitcoin’s price soared to $116,200 amid rising expectations of a Federal Reserve cut.
- The United States released a disappointing consumer confidence report.
- Amazon and UPS announced significant layoffs.
Bitcoin (BTC) has increased by more than 11% from its recent low this month, though it is still significantly below the year-to-date peak of $126,300.
Bitcoin Price Surge Before Fed Meeting
Several factors contributed to Bitcoin’s sudden rise in the last couple of hours. The likelihood of these cuts increased following the release of the U.S. September consumer inflation report last Friday.
The report indicated a slight rise in the headline Consumer Price Index (CPI) for September, while the core figure decreased. The headline CPI edged up to 3.0%, and the core CPI dropped from 3.1% to 3.0%.
Furthermore, a report issued today highlighted that consumer confidence fell to 94.6 in October, down from 95.6 in September. This decline in confidence is attributed to concerns over the labor market and ongoing inflation.
Indicators suggest that the labor market is continuing to weaken. Amazon revealed its plans to cut 30,000 jobs, while UPS will lay off 14,000 employees. These layoffs will raise the annual total to 48,000.
As the meeting between Donald Trump and Xi Jinping approaches, Bitcoin’s price has also rallied. It is anticipated that the two leaders will sign agreements previously negotiated by top officials last weekend and pledge to engage in further discussions.
A trade agreement between the U.S. and China is likely to positively impact Bitcoin and the broader crypto market by alleviating significant geopolitical tensions.
Additionally, Bitcoin’s price is benefiting from ongoing spot ETF inflows, with existing funds registering over $149 million in inflows on Monday, following an addition of $90 million on Friday.
BTC Price Technical Analysis
According to the daily chart, Bitcoin’s price has rebounded after hitting a low of $103,575 earlier this month. It has consistently stayed above the 50-day moving average and formed a notably bullish megaphone pattern.
This pattern consists of two diverging trendlines that resemble a megaphone shape. Consequently, the cryptocurrency is likely to keep rising, with bulls aiming for the psychological milestone of $120,000. A drop below the support level at $110,000 could nullify this optimistic outlook.
