Bitcoin Hits Over $120k While Ethereum Rises

Bitcoin jumped over $120,000 right after the Fed decided to cut rates in September. Traders are now betting that more cuts might happen in October and December. This expectation of easier monetary policy is keeping liquidity hopes high. Meanwhile, Ethereum has also been making moves, closing the gap in performance against Bitcoin for the year thanks to a solid Q3. On the regulatory front, the IRS just rolled out new guidelines saying that unrealized gains and losses in crypto won't be hit with the 15% Corporate Alternative Minimum Tax. This is a good sign that could tempt more companies to hold crypto on their books without worrying about getting taxed on "paper profits." So, will Bitcoin reach $130K before the next Fed meeting? Guess we’ll just have to wait and see how things unfold.

With the US government shut down, according to CME Group’s FedWatch tracker, the probability of the October rate cut rose to 100% and December stands at 88%. If the lockdown continues, the Feds would have to depend on past employment reports since the September job reports might not be available. Trump has also indicated that about 750,000 government workers might be laid off. This will affect the labour market negatively, which declined by 32,000 in September. The US seems to be making laws to attract more crypto businesses to the country. The market has been bullish since yesterday and it would get to another ATH if the continues in this trajectory.

I would say that this huge increases based on political moves will not be sustainable. What we need is a strong bitcoin hype and that will come eventually, it is not going to be impossible. The fact that we rose to 120k+ is a proof that we are still quite bullish and bear has not started, if even the smallest moves makes it go that high then we should be able to actually see this as something that we can make a profit from and a bull run otherwise it makes no sense. We should be considering how even higher is possible too, too many people think that is not possible but we should be considering how that is totally possible. I know that it is not reaching to a crazy level but we should be able to make that work, it is going to actually help a lot with time.