Ted Cruz (R-TX) – a crypto-supportive Republican senator – believes a US Central Bank Digital Currency (CBDC) is likely to become a reality. The politician believes both the Federal Reserve and the White House currently want one, and that the Democratic party won’t vote against its issuance. In an interview published by What Bitcoin Did on Friday, Cruz discussed the current political climate surrounding crypto. In general, the senator believes Democrats are more opposed to the industry than Republicans, due…
September is done now. It was a pretty mixed month for the crypt industry, with coin prices moving with high volatility. However, many in the crypto market are still confident that things will be better in October.
As it has always been, any recovery that comes to the crypto market will hit Bitcoin first. The asset remains by far the most valuable in the industry. So, it will need to lead others that hope to see gains as well.
Recapping Bitcoin’s Performance in September
September had started on an impressive note for Bitcoin. The asset crossed the $50,000 mark for the first time since the downturn of May. People were also excited about increased adoption, especially as the El Salvador news was coming.
Interestingly, the rise to $50,000 came close to the El Salvador news. Many believed that the country’s adoption of Bitcoin as legal tender would eventually cause more people to use it out of necessity. Instead, when El Salvador’s Bitcoin Day came, it traded the asset at $52,933. Sadly, this day also started Bitcoin’s long drop.
After going through several bearish cycles, it seemed evident that September wouldn’t be the best month for Bitcoin. As expected, the entire market took a hit as well.
However, it is worth noting that some coins were still able to notch impressive performances during the month. SOL was especially a standout performer, rising by 34.2 per cent in September. In a month where volatility was the name of the game, SOl stood out for delivering impressive returns for investors.
SOL saw significant gains as many investors moved to it as a haven while the market slid. It hit an all-time high of $216, showing that blockchain tokens are still significant to the market.
Several other coins delivered impressive returns as well. However, the fact remains that Bitcoin is still the asset that holds significant sway on the market and its movement.
What Do The Technicals Say About Bitcoin?
Bitcoin’s technicals are currently a bit murky. However, the coin is trading above its short-term moving average (MA) indicators – from its 10-day MA of $43,547 to its 50-day MA of $46,956. This is primarily because of Bitcoin’s performance in the past 24 hours. The coin’s price has risen by 8.13 per cent to $47,404, making an excellent start to October.
As expected, Bitcoin is trading above all of its long-term MA indicators as well. So, it looks like the coin is suitable for all investors, regardless of what time frame they’re looking for.
Bitcoin’s moving average convergence divergence (MACD) is positive, giving a buy signal. However, the coin’s relative strength index (RSI) is 55.98, still relatively underbought for a cryptocurrency.
The numbers support recovery or Bitcoin. This seems like a good time to buy the coin now, especially with analysts believing a comeback to end the year.
History is also showing good news for Bitcoin investors. This time last year, Bitcoin traded at $10,813. It went on to finish the year at $29,328 – a jump of 172.1 per cent. Going by those numbers, Bitcoin could still rise as high as $81,000 this year.
The Fundamentals Supporting a Bitcoin Rise
Of course, it is easier said than done. Bitcoin’s rise last year was primarily due to extensive adoption news that came towards the end. For instance, the market saw a considerable amount of institutional Bitcoin adoption. In addition, MicroStrategy had just started to make more significant plays with Bitcoin, and other companies like Ruffer Investments did the same thing.
October was also the month where PayPal first announced that it would support cryptocurrencies. Since then, the payment processor has rolled out support for crypto purchases and even trading.
Similar news will need to come out if Bitcoin hopes to climb like it did last year. We already got something, with Twitter adding crypto to its Tip Jar feature the previous week. But that’s still relatively small news. Twitter CEO Jack Dorsey has always been a big crypto fan, so it’s not surprising.
The market needs a significant piece of news that will move investors and drive up interest in cryptocurrencies once more. It will be interesting to see what comes up in the next few weeks, but investors are optimistic.
What a Bitcoin Rally Will Mean for The Market
As explained earlier, Bitcoin is the dominant force for crypto. However, all other coins tend to move in the same direction as the coin, so its price will trickle down to the others.
Analysts are looking at assets like ADA and XRP, whose backing projects are now waiting for more significant gains. The Cardano blockchain introduced smart contracts last month, and adoption for it is rising. Ripple Labs also moved into the non-fungible tokens (NFTs) space, with adoption set to rise. Once more people use these platforms, ADA and XRP should jump significantly. But, a rally in the broader market will help them even more.
However, some coins could make moves regardless of Bitcoin. SOL already showed some autonomy with its performance last month. Coins like DOT, LINK, and ONE also delivered impressive gains while Bitcoin dropped. These coins have shown massive resistance, but everyone understands that payments for Bitcoin will be beneficial for all cash.