Uptober Rally : Why Crypto Market Is Poised For Major Bull Run In October?

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The prominent crypto researcher, Qiao Wang of Alliance through a latest X post has brought a sigh of relief to the community. He shared that as the world’s two largest economies, the US and China, are both nearing the start of the next easing cycles, the macro conditions for a crypto rally seems to be potentially strong. 

He indicated that the two largest economic systems in the world — the U.S. and China — started “easing cycles.” which implies that both countries are back to “quantitative easing” (QE), which is a monetary policy strategy used by central banks like the Federal Reserve. With QE, a central bank purchases securities in an attempt to reduce interest rates, increase the supply of money, and drive more lending to consumers and businesses.

Such measures were taken by the U.S. government during the 2008 and 2020 crises to handle the market recession and its effects.

Wang also wrote that the “chart finally is looking good.” In the last month, Bitcoin (BTC) added almost 10%, dismissing the battle-tested “Bitcoin hates September” narrative. However, he also mentioned that the market sentiment is still somewhat in disbelief. He concluded by saying “Way up a few months from now.”

The community is discussing the potential QE initiatives from both the U.S. and China as powerful drivers for tough times. For the first time in 19 years, the People’s Bank of China initiated a treasury bond trade totaling 100 billion yuan or $14.1 billion in equivalent. In the U.S., the Fed cut the rate for the first time since July 2023 to 5%.

Notably, Veteran trader Henrik Zeberg has repeatedly forecasted the “worst recession since 1920s” to come in the next months.

Bitcoin and Ethereum ETFs recorded the highest multi-week inflows in the session ending Friday, September 27, amidst the ongoing crypto market recovery. Furthermore, For the first time since July, weekly inflows into spot Bitcoin ETFs surpassed the billion-dollar mark, reaching $1.11 billion, as analysts see a new all-time high for BTC over the next 3 months.

In his latest analysis, 10x Research’s Markus Thielen noted Bitcoin’s recent breakout above $65,000 is a major catalyst for a potential Q4 rally. He believes this move could ignite a wave of FOMO, pushing Bitcoin toward $70,000 and setting the stage for new all-time highs sooner than most expect.

He pointed to a combination of factors driving this bullish momentum, including a sharp rise in stablecoin minting, nearly $10 billion issued after the Fed’s July meeting, flooding the crypto market with liquidity.

Thielen noted that 55% of currently mined Bitcoins come from mining pools in China. The country’s massive monetary and fiscal stimulus measures, right after the Fed’s rate cut, could trigger “significant capital outflows” into cryptocurrencies, potentially accelerating Bitcoin’s bullish momentum.

He stated–

The likelihood of a Q4 rally is exceptionally high, with gains likely front-loaded. Our recent reports emphasized the importance of positioning for this rally that may just be beginning. FOMO has returned to the altcoin market, fueled by Bitcoin’s breakout above $65,000. A major surge could be on the horizon, sparking even more FOMO across the crypto space.