(Kitco News) – Financial markets surged higher on Tuesday, with bulls setting their sights on new all-time highs for Bitcoin (BTC), gold, and the Nasdaq while the DXY and Treasury yields declined.
The latest data from the Bureau of Labor Statistics showed there were 7.44 million jobs open at the end of September, a decrease from the 7.86 million seen in August, while the data from August was revised lower from the 8.04 million open jobs initially reported.
The interest rate path is also top of mind for investors as surging equities prices and a resilient economy have some questioning whether the Fed will have to reduce the number of planned cuts, especially if inflation starts to pick up again.
“Larry Fink, CEO of BlackRock, commented on the market's overly optimistic expectations for substantial Federal Reserve interest rate cuts this year,” noted analysts at Secure Digital Markets. “Although some rate reductions have occurred, Fink argued that the anticipated scale of cuts is not aligned with the broader economic landscape, highlighting ongoing inflation pressures exacerbated by current government policies.”
The CME FedWatch Tool puts the odds of a 25 basis point cut in November at almost 99%, while the odds of another 25bps cut in December stand at 74%.
The Nasdaq climbed to a new record high on the back of a strong showing from tech and finished the day at a record close, increasing 0.78%. The S&P also finished in the green, up 0.16% but down from the highs of the day, while the Dow lost 0.36%.
Gold extended its streak of new record highs, hitting $2,775/oz before experiencing a slight pullback. At the time of writing, spot gold trades at $2,771.80/oz for a gain of 1.09% on the session.
Data provided by TradingView shows that Bitcoin came within 0.5% of its all-time high of $73,750 as bulls took control of the price action and propelled it higher.
BTC/USD Chart by TradingView
At the time of writing, BTC trades at $72,468 for an increase of 4.15% on the 24-hour chart.
And the crypto ecosystem’s favorite meme coin, Dogecoin (DOGE), excited market watchers as it surged to $0.18, its highest price since April, thanks to the help of X owner Elon Musk.
“Dogecoin is capturing heightened market attention, with open interest nearing historic highs,” noted Secure Digital Markets analysts. “This trend is buoyed by increasing confidence in Donald Trump's prospects in the upcoming presidential election, rising by 33% since Sunday. The cryptocurrency is increasingly viewed as linked to the election, amplified by Elon Musk's support for Trump and rumors of Musk leading a proposed ‘Department of Government Efficiency,’ humorously acronymized as D.O.G.E.”
The next phase of the bull market has begun
“Bitcoin surged past $71,500 early today, marking a notable increase in market dynamics. BTC surpassed the $70,000 threshold for the first time since June on Monday, catalyzing a trading volume of $48 billion,” Secure Digital Markets analysts said. “There is a consistent rise in open interest, particularly on the CME, indicating a growing interest from institutional investors.”
“The uptrend in funding rates since mid-September suggests a prevailing bullish sentiment toward long positions,” they added. “Bitcoin futures experienced a significant expansion in open interest, recording the largest single-day increase since June 3. As of Tuesday, open interest escalated to over 20,000 BTC, valued at approximately $2.5 billion, culminating in nearly 600,000 BTC, or $42.6 billion in total.”
“In the realm of crypto ETFs, Bitcoin attracted significant inflows totaling $479.4 million, predominantly led by BlackRock, while Ethereum registered minor outflows of $1.1 million,” they noted.
Veteran trader Peter Brandt provided several scenarios on Bitcoin price moving forward, each utilizing a different technical analysis method.
“There are numerous ways to determine targets,” he said. “One variable is whether semi-log or linear scale is used.” His data showed a possible rally to $94,000 in a “measured move” off the triangle pattern from the breakout level on a semi-log chart.
“A swing target can also be determined by projecting the Nov 2022 low to Mar 2024 high upwards from Aug 2024 low as shown also on log scale,” he added.
While this chart gives a potential high price above $200,000, Brand said, “For now, I think this is a stretch. My rule is one target at a time.”
A third scenario utilized the symmetry of Bitcoin’s price action over time to give a price target of $160,000.
“If this sequence continues, the next bull market cycle high should occur in late Aug/early Sep 2025,” Brandt noted. “Of course, all of these targets could be wrong. Thus, I always trade with risk management in mind,” he said on X.
MN Consultancy founder Michaël van de Poppe discussed Bitcoin’s rally above $73,000, saying, “The kickoff today on the markets isn't entirely a shock.”
“#Bitcoin has a tremendous amount of inflow in the ETF,” he noted. “Job Openings (first datapoint) were the worst since April '21. That last one is a market mover for Yields. If unemployment and labor markets become weaker --> Yields start to fall --> DeFi picks up --> $ETH picks up --> #Altcoins start to flourish, and it's the big Dot com type of bull cycle that we are all looking for.”
“Technically, that's what we're already seeing today, and that's why the reversal is happening,” he added. “It's all depending on macroeconomic data, and that shows that we're at the stage of becoming a mature asset class for crypto. Massive, relatively unlimited upside is going to be here and most people can't even fathom how much that is. Good times.”
And market analyst Keith Alan anticipated the rally to near all-time high levels as well as the subsequent pullback, saying, “A move above $72k may send bears into hibernation, but be prepared for a retest of support before going after an ATH.”
Momentum continued through the night and #Bitcoin bulls are now sizing up a critical move to create another higher high.
A move above $72k may send bears into hibernation, but be prepared for a retest of support before going after an ATH. pic.twitter.com/T26f1Oi0dQ— Keith Alan (@KAProductions) October 29, 2024
Bitcoin’s strength prompts an altcoin rally
Only four tokens in the top 200 recorded losses greater than 0.5% on Tuesday as Bitcoin’s rally towards a new high encouraged traders to fully reengage with the altcoin market.
Daily cryptocurrency market performance. Source: Coin360
Mask Network (MAS) was the biggest beneficiary of the return of risk-on sentiment, gaining 19.2%, followed by followed by increases of 17.1% and 15.7% for Sui (SUI) and WOO (WOO). Kaspa (KAS) saw the largest decline, falling 6.2%, while Raydium (RAY) and Jito (JTO) lost 3%, and Ponke (PONKE) declined by 2.6%.
The overall cryptocurrency market cap now stands at $2.42 trillion, and Bitcoin’s dominance rate is 58.9%.
