FX.co ★ Bitcoin Hits 7-Week High

In early October, Bitcoin surged to nearly $120,000, reaching its highest point in seven weeks. This rise can be attributed to political uncertainty and the anticipation of further interest rate cuts in the United States, which have fueled demand. The US government experienced its first shutdown in nearly seven years due to a failure among lawmakers to agree on temporary funding. This closure is expected to last at least three days and has delayed the release of September's nonfarm payrolls report. Additionally, the ADP data revealed an unexpected decrease of 32,000 private-sector jobs in September, contrasting with projections for a 50,000 increase. This highlights weaknesses in the labor market and bolsters the argument for additional easing by the Federal Reserve. Currently, futures markets suggest there is a 99% probability of a 25 basis point rate cut this month, with further reductions anticipated before the year's end. Bitcoin's upward trend was also supported by a favorable risk-on sentiment in the equities market, enhanced by OpenAI's agreement with South Korea's Samsung Electronics and SK Hynix, which has reinforced optimism around artificial intelligence.