Market Overview
• Bitcoin (BTC) is trading around $110,510 (-2.09% in 24h), and Ethereum (ETH) is at $3,990 (-2.89%).
• Following Powell's remarks, U.S. spot Bitcoin ETFs saw $102.58 million in net inflows, and Ether ETFs attracted $236.22 million.
• BTC's market dominance is 58.79%, with a market cap of ~$2.2 trillion. It reached an ATH of nearly $126,198 on October 6th.
• Market sentiment is in a state of 'Fear,' with the Fear & Greed Index at 32, indicating uncertainty.
Core Driving Factor
• The main driver is Fed Chair Powell's signal that quantitative tightening (QT) could end soon, hinting at future interest rate cuts.
• Markets are pricing in a 96.7% probability of a near-term rate cut, fueling 'risk-on' sentiment.
• An end to QT and lower rates are expected to boost liquidity, driving capital toward crypto.
• The news sparked bullish social media sentiment, with analysts suggesting a new liquidity cycle for crypto is beginning.
• A weaker U.S. dollar from rate cuts could strengthen Bitcoin's 'digital gold' narrative.
Technical Analysis & Trading Strategy
• For Bitcoin (BTC), reclaiming $119,000 is key for bullish momentum. The immediate support is $110,000, with a break below risking a drop to the $107,100-$108,000 zone.
• Ethereum (ETH) shows a stronger response, with key support at $4,000. A break above $4,200 could confirm upward momentum toward a potential $6,000 target.
• Traders should watch if BTC holds the $110,000 support. Given the market's 'Fear' sentiment and high volatility, careful risk management is advised.
• Key risk factors include a potential 'dead cat bounce' and upcoming economic data, such as the CPI report (Oct 24) and FOMC meeting (Oct 28-29).#PowellRemarks #BinanceHODLerENSO
