Bitcoin is chilling below $64,000 after concerns about China’s economy spooked investors…but analysts are predicting a major comeback.
This isn’t about some random internet numbers going up and down. If BTC breaks the psychological $65,000 barrier, it could trigger a wave of exuberance and FOMO.
And a Bitcoin surge could lift the whole crypto market, and so even if you’re not invested in BTC itself, your other digital assets could get a lift.
“Although Bitcoin has yet to break through the downtrend, we believe it’s only a matter of time before it does,” Markus Thielen, founder of research firm 10x, said in a note to clients.
Here me out
- If BTC breaches the technical threshold, Thielen predicts it will rise 10%-15%, with the next technical stop being $70,000.
- October is Bitcoin’s lucky month, with an average monthly return of 21% over the past 10 years, according to crypto futures trading app CoinGlass.
- But it just closed its best September ever this year, with an average of 7.29% in monthly returns despite THAT month being historically bearish for the asset.
- There’s also a lot more stablecoin action going on. More than $39 billion in stablecoins – which are linked one for one with specific currencies – have been minted since the spot Bitcoin ETF debuted in January. This suggests that interest in crypto is growing more generally.
A string of rate cuts by major central banks worldwide has driven investors toward risky assets. And Bitcoin is nothing if not a risky asset.
At the same time, a US rate cut potentially means a weaker dollar and higher inflation. This usually increases demand for alternative assets like Bitcoin, which can act as a store of value and a hedge. Improving revenue within the Ethereum ecosystem and the upcoming payouts to FTX creditors this month could also add to the buzz, according to 10x.
For the more adventurous, now might be a good time to buy Bitcoin, or crypto more generally.
If Bitcoin does break through that $65,000 barrier, investors could be looking at some sweet gains. But if it doesn’t, well, that’s the risk you take. As always, do your own research and don’t invest more than you can afford to lose. Don’t bet your rent money on it.
