The crypto market is rising today, with Bitcoin nearing $117,000 and the valuation of all coins moving back to $4 trillion.
Summary
- The crypto market is going up as altcoin ETF approvals approach.
- It then accelerated after the weak ADP jobs report, which boosted the odds of a rate cut.
- Investors are optimistic of an Uptober rally in the crypto industry.
Bitcoin (BTC) rose to a $116,800, while popular altcoins like Ethereum (ETH), Ripple (XRP), and Solana (SOL) were up by over 3% in the last 24 hours.
Crypto market rises ahead of altcoin ETF approvals
One reason why crypto prices are soaring today is that the altcoin ETF season has arrived, as the deadline for most proposals is nearing.
The first coin to watch will be Litecoin (LTC), whose deadline comes up on Thursday. A Polymarket poll shows that the odds that the SEC will approve this ETF are almost 95%.
More deadlines on popular cryptocurrencies like Solana and XRP will come next week, and the SEC has already hinted that it will approve them. One of the signs of this is that the agency published listing standards that will accelerate future listings.
Crypto ETF approvals are a highly bullish aspect for the industry because of the new money that will come from American institutional and retail investors.
Hopes of an Uptober rally continue
The other main reason why the crypto market rally is happening is that October is normally the second-best month for these assets.
Data compiled by CoinGlass shows that the average Bitcoin price return in October is 20%, second only to November’s 46%. Bitcoin has risen in all but two Octobers since 2013. Ethereum’s price has also had positive monthly performance in most Octobers.
Most importantly, October marks the start of the fourth quarter, which is normally the best period for the crypto market.
In this case, the quarter has some bullish catalysts such as Federal Reserve interest rate cuts, altcoin ETF approvals, and the potential approval for retirement funds to invest in the industry.
Federal Reserve interest rate cuts as the labor market weakens
The crypto market is also rising after a weak jobs report by ADP, the biggest payroll company in the world. The report noted that the labor market continued to deteriorate in September.
The U.S. shed 32,000 jobs during the month, much lower than the median estimate of 50,000 gains. ADP also downgraded its August jobs report to show that the economy lost 3,000 workers.
These numbers, together with the ongoing government shutdown, means the Federal Reserve will continue cutting interest rates in the coming months, which will boost risky assets like cryptocurrencies.
