Will October Be a Big Month for Bitcoin?
Could bitcoin increase its price by as much as 30 percent in the coming months?
Bitcoin May Come Back from Oblivion in Two Months
There are many analysts out there that seem to believe October of this year will be a major turning point for bitcoin. They believe the asset could add as much as 30 percent to its value, which per its price at the time of writing, would mean that it would shoot up to about $28,000 or $29,000. That’s not much of an improvement, but it’s certainly better than scraping the bottom of the $20,000 barrel.
The world’s number one digital currency by market cap has seen nothing but doom and gloom over the past several months. The asset – which was trading at an all-time high of approximately $68,000 per unit in November of last year – has since lost roughly 70 percent of its value in what has been deemed a 2018-level crash, and it is now stuck between $21,000 and $22,000.
But not everyone thinks the negative sentiment currently surrounding bitcoin will last. Felix Hartmann – managing partner of Hartmann Capital – explained in a recent interview:
A lot of the insolvencies and forced unwinding from a volume perspective are behind us. Three Arrows filing for bankruptcy was kind of the final pin in that.
Aside from Three Arrows collapsing, there have been plenty of other events within the realm of the digital currency space that have ultimately contributed to prices meandering about the lowest points of the financial spectrum. Among them were the fall of Terra USD – an algorithmic stable currency – and the pausing of withdrawals on crypto lending platforms such as Celsius.
At press time, many of the customers of these platforms still cannot gain access to their funds. These companies are pausing withdrawals under the guise of protecting themselves from increased market volatility and speculation.
For men like Ryan Shea – an economist at Trakx – the big clincher came in the form of the Fed hiking rates by 75 points over a month ago. He says this maneuver coincided with bitcoin and many other digital currencies falling into oblivion before experiencing slight upticks. At that time, bitcoin fell to about $17,500, and while the dip was brief, it certainly scared the pants off many investors – so much so, that the panic-laden selloff many traders were witnessing increased tenfold through that weekend.
The Fed Is the Big Instigator
Shea said:
In effect, they are looking through the hikes and instead are focused on the expectation of eventual Fed capitulation, something that is a positive scenario for crypto prices and risk assets more generally.
Things have ultimately become so bad within the space that billionaire crypto figures like Sam Bankman-Fried of FTX fame have had to bail out various companies and exchanges to keep them afloat.
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