{"id":505258,"date":"2022-10-31T17:29:07","date_gmt":"2022-10-31T14:29:07","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/why-is-the-crypto-market-up-today\/"},"modified":"2022-10-31T17:29:07","modified_gmt":"2022-10-31T14:29:07","slug":"why-is-the-crypto-market-up-today","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/why-is-the-crypto-market-up-today\/","title":{"rendered":"# Why is the crypto market up today?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2f00e321414\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2f00e321414\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/why-is-the-crypto-market-up-today\/#%E2%80%9D_Why_is_the_crypto_market_up_today_%E2%80%9C\" >&#8221; Why is the crypto market up today? &#8220;<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/why-is-the-crypto-market-up-today\/#The_Fed_could_change_its_tune_on_rate_hikes\" >The Fed could change its tune on rate hikes<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/why-is-the-crypto-market-up-today\/#Bitcoin_volatility_snaps_record_low_levels\" >Bitcoin volatility snaps record low levels<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/why-is-the-crypto-market-up-today\/#Dollar_eyes_a_new_chapter\" >Dollar eyes a new chapter<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Why_is_the_crypto_market_up_today_%E2%80%9C\"><\/span>&#8221; Why is the crypto market up today? &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div class=\"post-content\" data-v-4b69a2fe>Bitcoin (BTC) has hit six-week highs and held onto its gains since \u2014 is it the start of a trend change?<\/p>\n<p>After passing $21,000 twice over the past week, BTC\/USD is still lingering near the top of its multimonth trading range.<\/p>\n<p>The coming week promises to provide a fresh dose of volatility thanks to the United States Federal Reserve commenting on interest rates and the economic outlook.<\/p>\n<p>The key date is Nov. 2, which will see:<\/p>\n<ul>\n<li>Decision on key rate hikes<\/li>\n<li>Comments and economic projections<\/li>\n<li>Speech from Fed Chair Jerome Powell<\/li>\n<\/ul>\n<p>While opinions are mixed as to whether Bitcoin can stand the heat, the market has been caught in disbelief \u2014 liquidations in recent days made records for 2022.<\/p>\n<p>Should further upside ensue, traders may have to reassess their take on Bitcoin\u2019s weakness in what many thought would be the quarter in which BTC\/USD sees a capitulation to new macro lows.<\/p>\n<p>The overall crypto market cap has already <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/coinmarketcap.com\/charts\/\">passed<\/a> the $1 trillion mark once again, according to data from CoinMarketCap.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-10\/b5bdb0e0-5789-4f1a-8cc6-af7d69cbf1f3.png\"><figcaption style=\"text-align: center;\"><em>Crypto market cap chart. Source: CoinMarketCap<\/em><\/figcaption><\/figure>\n<p>Hours from the monthly close, \u201cUptober\u201d may at least still live up to its name.<\/p>\n<p>Cointelegraph takes a look at three major factors influencing crypto market strength in the current environment.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"The_Fed_could_change_its_tune_on_rate_hikes\"><\/span>The Fed could change its tune on rate hikes<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>When Cointelegraph reported on why the crypto market saw fresh losses last week, the United States Federal Reserve was first on the list.<\/p>\n<p>Concerns focused on unwavering policy keeping the U.S. dollar strong and rates surging higher for the foreseeable future \u2014 the worst-case scenario for risk assets.<\/p>\n<p>Nonetheless, the past week has seen the results of that policy spill over into other economies, notably Japan, which made repeated interventions in its exchange market to prop up the flagging yen.<\/p>\n<p>At the same time, rumors are gathering over the outlook for rate hikes as the Fed runs out of room to maneuver. After next month\u2019s hike, suspicions are that policy will begin to U-turn, making smaller hikes in subsequent months before reversing altogether in 2023.<\/p>\n<p>As such, any signal that the Fed is preparing to soften its hawkish stance is being seized on by markets weary from a year of quantitative tightening (QT).<\/p>\n<p>November\u2019s FOMC meeting is still overwhelmingly <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.cmegroup.com\/trading\/interest-rates\/countdown-to-fomc.html\">expected<\/a> to result in a 0.75% rate hike, matching September and July, according to CME Group\u2019s FedWatch Tool.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-10\/32e9e49f-ab4b-4ef9-b12f-c56749fde08e.png\"><figcaption style=\"text-align: center;\"><em>Fed target rate probabilities chart. Source: CME Group<\/em><\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Bitcoin_volatility_snaps_record_low_levels\"><\/span>Bitcoin volatility snaps record low levels<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Analyzing data from Cointelegraph Markets Pro and <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.tradingview.com\/symbols\/BTCUSD\/?exchange=BINANCE\">TradingView<\/a>, it becomes clear that BTC\/USD has been too quiet for too long.<\/p>\n<p>This is especially visible in the Bollinger Bands volatility indicator, which has been rarely closer together in Bitcoin\u2019s history and\u00a0demanding a breakout\u00a0for weeks.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-10\/b03b2dc4-d804-4d92-b793-96c7c3c277bf.png\"><figcaption style=\"text-align: center;\"><em>BTC\/USD 1-day candle chart (Bitstamp) with Bollinger Bands. Source: TradingView<\/em><\/figcaption><\/figure>\n<p>This month, Bitcoin volatility even fell below that of some major fiat currencies, making BTC look more like a stablecoin than a risk asset.<\/p>\n<p>Analysts had long expected the trend to undergo a violent change, however; and true to form, crypto markets did not dis<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>oint.<\/p>\n<p>A look at the Bitcoin historical volatility index (BVOL), recently at multiyear lows seen only a handful of times, shows that Bitcoin still has a way to go to abandon this characteristic.<\/p>\n<p>\u201cPretty funny that volatility has been so compressed and we\u2019ve become so conditioned as market participants that the slightest 3% move feels like a 15-20% move,\u201d William Clemente, co-founder of crypto research firm Reflexivity Research, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/WClementeIII\/status\/1584967228151431168\">commented<\/a>.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-10\/39dbdf9a-1cd9-4d15-9a06-6fb483be39f1.png\"><figcaption style=\"text-align: center;\"><em>Bitcoin historical volatility index (BVOL) 1-week candle chart. Source: TradingView<\/em><\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Dollar_eyes_a_new_chapter\"><\/span>Dollar eyes a new chapter<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>After a parabolic uptrend throughout 2022, the U.S. dollar is only just beginning to show signs of weakness.<\/p>\n<p><strong><em>Related:\u00a0Analyst puts Bitcoin price at $30K next month with breakout due<\/em><\/strong><\/p>\n<p>The U.S. dollar index (DXY) recently hit its highest levels since 2002, and momentum may yet return to take it even higher \u2014 at the expense of risk assets and major currencies alike.<\/p>\n<p>In the meantime, however, the DXY is under pressure, and its descent came in lockstep with a return to form for Bitcoin and altcoins.<\/p>\n<p>This flags an issue that Bitcoin bulls are keen to shake \u2014 an ongoing strong correlation with traditional markets and inverse correlation with the dollar.<\/p>\n<p>\u201cBitcoin now has a correlation with Gold of about 0.50, up from 0 in mid-August,\u201d trading firm Barchart <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/Barchart\/status\/1583998859369291776\">revealed<\/a> this week. <\/p>\n<blockquote><p>\u201cWhile the correlation is higher with $SPX (0.69) and $QQQ (0.72), the correlations have decreased of late.\u201d<\/p><\/blockquote>\n<p>Fellow analyst Charles Edwards, founder of crypto asset manager Capriole, noted that Bitcoin macro price bottoms are often accompanied by increasing gold correlation.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-10\/44c99c95-3715-4cdc-8088-3d4451f7c331.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>BTC\/XAU correlation chart. Source: Barchart\/<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Twitter<\/a><\/em><\/figcaption><\/figure>\n<p>Scott Melker, the analyst and podcast host known as \u201cThe Wolf of All Streets,\u201d also <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/scottmelker\/status\/1585237432126955521\">confirmed<\/a> a changing relationship between Bitcoin and the Nasdaq.<\/p>\n<p>\u201cNasdaq futures are down. Bitcoin is up. The short term correlation between the two has disappeared over the past few weeks. I will take it,\u201d he summarized.<\/p>\n<p class=\"post-content__disclaimer\">The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.\n<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/why-is-the-crypto-market-up-today\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Why is the crypto market up today? &#8220; Bitcoin (BTC) has hit six-week highs and held onto its gains since \u2014 is it the start of a trend change? After passing $21,000 twice over the past week, BTC\/USD is still lingering near the top of its multimonth trading range. The coming week promises to&#8230;<\/p>\n","protected":false},"author":1,"featured_media":505259,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMTAvYTYzMzIzMGQtM2Y5YS00NzQ5LThiYWItMDE3YzRiOTQzNWEwLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74867,74862,74937,73785],"class_list":["post-505258","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-altcoin","tag-bitcoin","tag-bitcoin-price","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/505258","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=505258"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/505258\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/505259"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=505258"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=505258"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=505258"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}