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Bitcoin Price Rises To $21,000 After Rediscovering Seasonal Trends

Bitcoin price is back on track to respect a history of climbing in October.

Bitcoin price is back on track to respect a history of climbing in October amid speculation that the Federal Reserve is getting closer to turning toward less aggressive rate hikes.

The largest token is up nearly 7% in the past two days and is up a similar amount so far. That’s still less than the 22% average gain in October over the past decade, according to data collected by Bloomberg.

The picture was less rosy at the start of the week, when Bitcoin suffered a loss in October that suggested it would defy the seasonal trend. But some recent comments from the Fed, in addition to mixed US economic data, have bolstered bets on a slowdown in monetary tightening that weighed on risky assets in 2022.

The Fed may be beginning to show signs of potential tipping, Nick Hotz, vice president of research at digital asset manager Arca, said in an interview. “From a more macro market perspective, there is certainly a lot on the short side,” he said. “If people close those shorts, it can drive up the price.”

The Fed’s lowered expectations are clearly visible this week in a decline in the dollar. At the same time, a 60-day correlation coefficient between Bitcoin and a dollar meter is about the most negative ever.

Bitcoin climbed more than 2% to trade around $20,700 as of 10 a.m. in London, while the runner-up Ether added 4% to around $1,540.

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