Bitcoin and the broader crypto market had a volatile first week in October 2023. Bitcoin’s gains were flat, trading around $28,000, while altcoins faced selling pressure. The rally in the crypto market was affected by developments in traditional finance, as 10-year Treasury yields reached their highest point in 16 years.

Important Macro Trends for Bitcoin Investors

This week, Bitcoin investors should pay attention to key macroeconomic developments. The US will release important data such as the Consumer Price Index (CPI) and Producer Price Index (PPI) for September, along with the Federal Reserve’s meeting minutes. Several Federal Reserve officials will also give speeches.

Investors are cautious as they analyze the Fed’s comments, as the central bank prepares for another rate hike in 2023. The trajectory for Bitcoin remains uncertain.

According to Bloomberg’s senior commodity strategist Mike McGlone, Bitcoin is showing a “risk-off” sentiment due to the recent tensions between Hamas and Israel. McGlone believes that the downward 100-week moving average is more likely to prevail over the upward 50-week moving average. He also mentions that the increase in crude oil prices is adding liquidity pressure to the market.

Some Bitcoin-friendly On-Chain Developments

Bitcoin experienced a significant outflow of coins from exchanges, totaling over 10,000 BTC, marking one of the largest movements in over a month, according to on-chain data provider Santiment. The leading cryptocurrency is currently attempting to surpass the $28,000 price level for the second time. The importance of utility is highlighted, as the number of unique addresses has reached its lowest point in six weeks.

In addition to Bitcoin, the altcoin market, including Ethereum (ETH), Solana (SOL), and Cardano (ADA), faced selling pressure, resulting in corrections of 3-5% over the past week.