Bitcoin Surges Above $120K as Traders Eye Bullish October

Bitcoin (BTC) has surged past the $120,000 mark, a level not seen since mid-August, fueling optimism among crypto traders betting on a strong October for risk assets. The world’s largest cryptocurrency has climbed steadily over the past five days, rebounding from late-September weakness. Analysts attribute the rally to favorable macroeconomic conditions and growing investor confidence heading into the final quarter of the year.

The derivatives market is also signaling bullish sentiment, with BTC futures open interest hitting a record $32.6 billion. On-chain analyst Skew noted that while short positions are accumulating, this dynamic could fuel a powerful short squeeze, pushing prices higher. Paul Howard, senior director at Wincent, flipped bullish this week, pointing out that Bitcoin reclaiming levels last seen in July and surpassing $115,000 signals strong momentum. He expects BTC to maintain support above $110,000 and potentially extend gains well beyond $120,000 in the coming weeks.

Market attention now shifts to the upcoming Federal Reserve meeting later this month. With a government shutdown in place, policymakers may lack access to updated economic data such as jobs reports. Treasury Secretary Scott Bessent warned that prolonged disruptions could dent GDP growth and impact working Americans. Historically, shutdowns have had limited economic fallout, but President Donald Trump’s threat to cut 750,000 federal jobs could amplify the risks in the current climate.

Altcoins are also riding the wave of optimism. Dogecoin (DOGE) gained nearly 3% in the past 24 hours, while the CoinDesk 20 Index, tracking top digital assets, rose 1.5%. Hopes for an altcoin season remain strong, particularly as several spot ETF applications are awaiting review. Canary Capital’s proposed Litecoin ETF faces a deadline today, though the SEC has paused reviews until the government reopens.

With Bitcoin’s total market capitalization helping push the crypto market back above $4 trillion, momentum is clearly favoring the bulls. Investors will be closely watching both macroeconomic policy shifts and ETF developments as potential catalysts for the next major leg higher.