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- Bitcoin soared past $34,800 at its October peak
- Gold gained around 8% as the month closes
Curtain Call on Uptober
Bitcoin prices jumped 23% as October drew to a close, currently trading around $34,400. The largest cryptocurrency by market cap has gained 1.6% in the last week alone, marking October 2023 as another successful “Uptober”.
The jump in the digital asset was fueled by optimism surrounding a proposed Bitcoin exchange-traded fund (ETF). If a spot BTC ETF were approved by the US Securities and Exchange Commission (SEC), it would provide more investors easier access to the crypto by allowing for trading on traditional exchanges. This, in turn, could boost the coin even higher. On top of that, the digital-asset market is turning to Bitcoin as a “safe-haven” asset during periods of uncertainty, much like the role gold plays.
That being said, gold has only gained a comparatively modest 7.3% in the last month. A traditional safe-haven and known hedge against inflation, the yellow metal soared in its own right as investors rushed to safety amid ongoing Middle East tensions. The glimmering commodity brushed against a peak of $2,007/oz on October 27, before retreating back to currently trade at $1,982 per troy ounce.
October brought more than a scare for the kids, investors got a fright of their own when all three major US indexes sealed their third month in a row of losses. Floating in a sea of red, the broad-based S&P 500 capped October off with a 2.2% loss, although it regained some ground in Tuesday’s session with a 0.7% gain. The Dow Jones Industrial Average lost 1.4% for the month, while the tech-heavy Nasdaq bore the worst of the sell-offs, wiping out 2.8% of its value in the same time. However, the two indexes did gain 0.38% and 0.48% respectively by Tuesday’s closing bell as the market braces for the Federal Reserve’s interest rate announcement.
In light of this, Fed Chair Jay Powell is set to speak today, following the Fed’s interest rate meeting. The policymakers are not expected to raise the benchmark interest rate from the current 5.25% – 5.50% level, in their hawkish efforts to wrangle inflation to 2%. Investors will, without a doubt, be hanging on to every word.
The Fed’s announcement will have an effect on market sentiment. Expect some volatility, and keep a watchful eye on your investments for any sign of potential losses. Bitcoin lovers have previously witnessed a profitable month in November, but as the crypto continues its upside swing, be on the lookout for any signs of a reversal.