Bitcoin rises to $63,905 as investors eye Fed rate cut

Bitcoin (CRYPTO:BTC) saw a 3.06% surge over the weekend, reaching $63,905 on Monday morning in Asia, as positive U.S. job market data and the possibility of an upcoming interest rate cut fueled optimism.  

The rally came after the U.S. reported the addition of 254,000 jobs in September, surpassing the Dow Jones forecast of 150,000, indicating strength in the economy.  

Min Jung, an analyst at Presto Research, pointed out that the U.S. economy is in a "Goldilocks" state, meaning it’s growing at a pace that is not too hot to trigger inflation nor too cold to cause a recession.  

This environment has sparked optimism among investors, contributing to Bitcoin’s latest rally.  

Rachel Lucas, a crypto analyst at BTCMarkets, noted that improved market sentiment, alongside expectations of a Federal Reserve rate cut in November, was driving increased liquidity into the market.  

According to the CME Group’s FedWatch Tool, there is a 97.9% likelihood of the Fed reducing rates again to a range between 4.50% and 4.75%, which Lucas believes would benefit risk assets like Bitcoin.  

She stated that "a more risk-on attitude among investors typically supports Bitcoin prices."  

Lucas also highlighted that a decrease in Bitcoin held on centralized exchanges, which correlates with reduced selling pressure, is further supporting the rally.  

However, she warned that for Bitcoin to sustain its recovery, it would need to break and hold above the key resistance level of $64,500, potentially leading to a retest of $66,000.  

Despite the positive momentum, analysts have flagged geopolitical tensions in the Middle East as a risk factor that could impact the sustainability of Bitcoin's rise.  

While October has started slower than expected, analysts remain optimistic that the recovery could accelerate as the month progresses.  

At press time, the Bitcoin price was $63,540.81.