Bitcoin Surged By 27% In October, Its Best Performance Since January

TL;DR

• Bitcoin rallied by 27% in October thanks to ETF enthusiasm.

• BTC and the broader cryptocurrency market could record further gains in the near term.

Bitcoin Could Surge Towards $40k After October’s Rally

Bitcoin, the world’s leading cryptocurrency by market cap, recorded its best month in October since January. BTC rallied by 27% in October, a move that saw it temporarily move above the $35k level.

The rally came after Bitcoin stagnated below $27k for the first half of October. It is now trading above $34k ahead of the Federal Reserve's interest rate decision later today. Market analysts expect the Fed to leave interest rates unchanged going into the last two months of the year.

Thanks to the recent rally, the market capitalization of all cryptocurrencies jumped nearly 19% to $1.255 trillion. This was the biggest increase in crypto wealth since the 33% jump recorded in January.

Bitcoin’s rally was fueled by optimism that bitcoin ETFs will soon get approved in the United States. The approval of a Bitcoin ETF would be a big deal for Bitcoin as it would make it easier for institutional investors to enter into the cryptocurrency space. 

Market participants are optimistic that the SEC would approve the spot Bitcoin ETF application filed by BlackRock and others. Grayscale is also looking to convert its Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin ETF and its recent victory in court indicates that this might be possible. 

While the broader crypto market performed well last month, some leading DeFi altcoins like Uniswap (UNI), Curve (CRV), Maker (MKR), and Compound (COMP), all recorded losses.