Cryptocurrency market shows sharp growth due to the aggravation of the regulatory crisis in the US

On Wednesday, October 1, the cryptocurrency market grew despite concerns about the US government shutdown. Bitcoin BTC $122,465.00 Mezo Wrapped BTC 1.59% Market capitalization $43.11 million VOL. 24 hours $2.48 billion rose by 3.67% to $ 118,549, reaching an intraday high of $ 119,453, the highest level since mid-August. Trading volumes increased by 31% to $ 76 billion. Ethereum ETH $4,487.31 Bridged Ether (StarkGate) 0.07% Market capitalization $0.1 billion VOL. 24 hours $1.77 billion rose by 4.82% to $ 4,353, XRP XRP $2.99 XRP -1.29% Market capitalization $179.01 billion VOL. 24 hours $0.32 billion - by 4.13% to $ 2.96, and Dogecoin DOGE $0.25 Binance-Peg Dogecoin -2.05% Market capitalization $0.64 billion VOL. 24 hours $0.36 billion added 6.77% to reach $ 0.2482.

The return of «greed» to the crypto market was confirmed by the Fear & Greed index. Analysts note that October is traditionally a bullish month: on average, bitcoin grows by 20%, Ethereum by 4.7%. Over the past day, the liquidation of short positions exceeded $ 580 million. The total capitalization of the crypto market rose by 3.69% to $ 4.05 trillion. Among the altcoins, Zcash (56.7%) and Dash (41.8%) were the biggest gainers.

The growth of cryptocurrencies occurred in parallel with the recovery of the US stock markets. The S&P 500 index rose by 0.34% to reach a new all-time high of 6,711 points, the Dow Jones added 0.09%, and the Nasdaq gained 0.42%. This was a sharp reversal after futures fell the day before due to the political crisis. According to Goldman Sachs, about 900,000 federal employees — 40% of the government — have been temporarily furloughed, and the publication of key economic data, including employment and inflation, has been suspended.

Analysts predict further growth in the fourth quarter. According to CryptoQuant, bitcoin has returned above the Trader’s Realized Price ($ 116,000), signaling a move into a bullish phase. On this basis, the company named a potential growth range of $ 160,000-$ 200,000.

Crypto analyst Cas Abbé points out that Ethereum is in the final stage of the «accumulation phase» according to the Wyckoff model, when institutional investors buy up assets on declines. He predicts the formation of strong support at $ 4,000 and a possible 80−100% breakout within 6−8 weeks.