Bitcoin has kicked off “Uptober” in style, with prices climbing toward the $120,000 mark, the highest level in nearly two months. The surge comes as optimism over U.S. Federal Reserve rate cuts and October’s historically bullish trend drive fresh momentum in the crypto market.
Bitcoin Surges to 7-Week High
On October 2, Bitcoin (BTC) surged 4% to reach $119,450 on Coinbase, marking its highest point since mid-August. This latest rally has cleared resistance at $117,500, leaving the $120K barrier as the next key level before new price peaks can be achieved.
At the time of writing, Bitcoin cooled slightly to $118,947, but sentiment remains strongly bullish. The rally has lifted the total crypto market cap to $4.16 trillion, while Bitcoin’s market capitalization now stands at $2.37 trillion—surpassing Amazon.
October’s Bullish Track Record
October has long been Bitcoin’s strongest month. Data from CoinGlass shows that Bitcoin has posted gains in 10 of the past 12 Octobers, reinforcing the phrase “Uptober” among traders.
This historical backdrop is fueling optimism that BTC may push beyond $120K and retest all-time highs as investor appetite returns.
Fed Rate Cuts Boost Risk Appetite
A major driver behind the latest rally is the expectation of Federal Reserve rate cuts later this month.
Recent U.S. labor data shows weaker hiring and softer employment trends, with unemployment projected to rise from 4.3% to 4.4% in September. Analysts believe this virtually guarantees another 0.25% Fed rate cut at the upcoming October 29 FOMC meeting.
“Bitcoin’s rally past $118,000 demonstrates its increasing sensitivity to monetary policy outlooks and its appeal as a hedge against economic uncertainty,” said Nick Ruck, director at LVRG Research.
CME futures markets now price in a 99% probability of a rate cut, boosting investor confidence in risk assets like crypto.
Altcoins Join the Rally
While Bitcoin is leading the surge, altcoins are also on fire:
- Ethereum (ETH) rose more than 5%, reaching $4,390, its highest since late September.
- Solana (SOL) pushed to $224, while Cardano (ADA) hit $0.85.
- Dogecoin (DOGE) and Chainlink (LINK) also posted 6%+ daily gains, along with Hyperliquid (HYPE).
This broad-based rally shows renewed confidence across the market, signaling that investors are positioning for a strong October.
The key question for traders is whether Bitcoin can decisively break above the $120,000 resistance. If successful, it could open the door to new all-time highs, given the strong fundamentals of:
- October’s bullish history
- Macroeconomic tailwinds from Fed policy
- Growing institutional interest in digital assets
With “Uptober” underway, momentum is clearly on the side of crypto bulls, and the next few weeks could be pivotal in shaping Bitcoin’s path toward the end of 2025.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.