Bitcoin (BTC) appears to be treading water at $83,000 U.S. as the market for cryptocurrencies looks for direction at the start of the fourth quarter.
While stocks have been volatile to start October, Bitcoin and other cryptocurrencies appear to be holding up and trading largely sideways.
Since the start of the month, Bitcoin has traded in a range of $82,000 U.S. to $86,000 U.S.
The largest cryptocurrency by market capitalization is encountering resistance at $86,000 U.S. and falls back each time it hits that level.
However, there appears to be a floor under BTC at $82,000 U.S., say analysts. So far in October, Bitcoin has risen 0.15%.
That compares to a 1% gain in the benchmark S&P 50 index, which continues to be dominated by the trade in artificial intelligence (A.I.) stocks.
Analysts say that the crypto market appears to be looking for direction as crude oil prices and yields in U.S. Treasurys climb higher.
Markets are also trying to assess the outlook for inflation and whether the U.S. Federal Reserve will continue to raise interest rates, which would be negative for risk assets such as Bitcoin.
Expectations for a rate hike from the U.S. central bank have recently been pushed out to December of this year from October previously.
The upcoming midterm congressional elections in the U.S. are also a wild card and leading many investors to take a wait-and-see approach to crypto and the market, say analysts.
The tepid gains so far in October stand in contrast to the usual gains seen during the month.
October is typically the strongest month of the year for Bitcoin, with the digital asset averaging an 18% gain in the month.
BTC is trading at $82,750 U.S. in early trading on Oct. 14.
