Bitcoin Awakens the Market…Cryptocurrency Recovers to $2.89 Trillion, Altcoins Also Stirring

▲ Ethereum (ETH), Bitcoin (BTC) ©Godasol

The cryptocurrency market is rising again, driven by Bitcoin (BTC)'s strength and expectations of easing regulatory uncertainty. With the total market capitalization increasing by 1.08% over 24 hours to $2.89 trillion, Bitcoin recorded its highest monthly closing price in 2026, pulling the market up, and buying interest appears to be spreading to some altcoins.

According to CoinMarketCap, a cryptocurrency market data aggregator, on October 1 (local time), the total cryptocurrency market capitalization increased by 1.08% over 24 hours, reaching $2.89 trillion. The correlation between the market and the Standard & Poor's (S&P) 500 was recorded at 37%. The key driving force behind this rise is Bitcoin. BTC and Ethereum (ETH) closed September with their highest monthly closing prices since 2026, and Bitcoin recorded its strongest third-quarter performance since 2017. Market analysis suggests that Bitcoin's technical strength is supporting the investment sentiment of long-term holders and institutional investors, spreading capital flows throughout the cryptocurrency market.

Regulatory expectations and altcoin rotation also contributed to the market's rise. In particular, discussions surrounding the token classification framework by the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have emerged as a major topic in the market, and movements such as the use of the XRP Ledger in the Brazilian financial market have also stimulated investor sentiment. Analysis suggests that expectations of reduced regulatory uncertainty are increasing interest from institutional and retail investors in major altcoins such as XRP, Cardano (ADA), and Internet Computer (ICP).

Spot ETF fund flows are also cited as a major variable. The total assets under management (AUM) for Bitcoin spot ETFs were presented as $111 billion, and for Ethereum spot ETFs as $14.66 billion. The market identifies the continued inflow of funds into Bitcoin and Ethereum spot ETFs as a key condition for the upward trend to persist. For the overall market, maintaining the $2.85 trillion level, where the 23.6% Fibonacci Retracement is located, is an important criterion for confirming an upward trend.

In the short term, the cryptocurrency market is expected to test for further upside around the $2.89 trillion mark. If Bitcoin holds a key support area corresponding to approximately $84,000 and the total market capitalization settles above $2.85 trillion, there is a possibility of re-testing the recent high of $2.94 trillion. Conversely, if the market capitalization falls below the 38.2% Fibonacci level of $2.8 trillion, the correction could widen.

Macroeconomic variables still weigh on the bull market. Based on JPMorgan's analysis, the market is focusing on the possibility of an additional interest rate hike by the U.S. Federal Reserve (Fed) in December as the next major variable. A hawkish shift in monetary policy could put pressure on risk assets, but analysis suggests that sustained inflows into spot ETFs could mitigate the impact. Ultimately, while Bitcoin's strength and regulatory expectations are driving the current rebound, which direction it breaks out from between the $2.85 trillion support and $2.94 trillion resistance will determine the short-term market trend.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. This content should be interpreted for informational purposes only.*