Traders showed signs of indecision across most markets on Tuesday, except in precious metals, where spot gold extended its record-breaking rally, surpassing $2,660 per ounce for the first time.
“The markets have been highly volatile, lacking clear direction,” said analysts at Secure Digital Markets. They highlighted that equities have drawn more attention recently, with rising valuations driven by post-Federal Reserve momentum. However, weaker-than-expected U.S. Consumer Confidence data caused a brief dip in both equities and cryptocurrencies, reflecting ongoing market vulnerability.
Despite the initial dip, optimism returned as news spread of China’s sweeping stimulus measures aimed at stabilizing its slowing economy. The People’s Bank of China (PBOC) implemented aggressive steps, cutting the reserve requirement ratio by 50 basis points and lowering minimum mortgage down payments to 15%. While these measures aim to support domestic markets, their global impact remains uncertain, analysts noted.
According to QCP Capital, China’s actions, combined with the U.S. Federal Reserve’s recent 50-basis-point rate cut, point to a global trend of monetary easing that could bolster risk assets like cryptocurrencies in the near future.
By the end of the trading day, the S&P 500, Dow Jones, and Nasdaq all closed slightly higher, gaining 0.25%, 0.20%, and 0.56%, respectively.
Meanwhile, Bitcoin remained stable, fluctuating around $63,200, with resistance at $64,000 proving difficult for bulls to break. “Bitcoin has been in a trading range for over 125 days,” Secure Digital Markets noted. “Despite bearish expectations, it’s up 22% from a low near $52,500 in September, keeping traders focused on a potential breakout above $65,000, which would restore bullish sentiment.”
At the time of writing, Bitcoin was trading at $64,275, up 1.41% over the past 24 hours.
Positive Outlook for Bitcoin and Gold
Bitcoin’s September performance has defied its typical seasonal weakness, which historically has seen average losses of around 5% between 2013 and 2023. Instead, Bitcoin posted a 7.25% gain for the month, buoyed by positive momentum from the Fed’s rate cut. Ether, the second-largest cryptocurrency, followed suit with a 4.90% rise for the month.
Joel Kruger, a market strategist at LMAX Group, attributed much of the crypto rally to the Fed’s decision. “The rate cut has reduced the appeal of the U.S. Dollar, increased inflationary pressure, and driven investor appetite for riskier assets like crypto,” Kruger said. He also noted a resurgence in ETF inflows for both Bitcoin and Ether, which further supported the market.
From a technical perspective, Kruger sees Bitcoin’s next major resistance at $65,000. A breakthrough at this level could trigger a new wave of buying and push the cryptocurrency toward retesting its all-time highs. With strong historical performance in October and November, many analysts are optimistic that Bitcoin could easily surpass $65,000 in the coming months.
Meanwhile, gold continues its upward climb, with some analysts projecting the precious metal could soon breach $3,000. TradingView analyst Arman Shaban noted that gold’s consistent gains, coupled with declining interest rates and geopolitical tensions in the Middle East, could fuel further price increases. “If these trends persist, we could see gold reaching $3,000 in the mid-term,” Shaban stated.
At the close of Tuesday’s session, gold was trading near $2,640, slightly below its intraday high but still poised for further gains.
Altcoin Market Shows Strength
Bitcoin’s resilience has also encouraged traders to re-engage with the altcoin market, where a majority of tokens in the top 200 recorded gains on Tuesday. Echelon Prime (PRIME) led the pack with a 21.3% increase, followed by dogwifhat (WIF) with a 14.9% surge, and Altlayer (ALT), which gained 12.4%. On the downside, Aave (AAVE) dropped 6.6%, while Catizen (CATI) and MX Token (MX) also saw declines of 6.6% and 5.3%, respectively.
The overall cryptocurrency market cap stands at $2.25 trillion, with Bitcoin maintaining a dominance rate of 56.3%.
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