Bitcoin is behind its usual pace in October, but at least some analysts say its stability near the $111,000 mark signals strength, not weakness.
Today’s price action will be familiar to frustrated Bitcoin bulls, with gold and silver hitting new record highs again and US stocks in the green. Bitcoin, however, remained under pressure, sliding 1.2% over the past 24 hours to $111,500. Losses were somewhat greater across the rest of the crypto sector, with ether and XRP down 3% and solana and dogecoin down around 2%.
Patience say analysts
Speaking at the Digital Asset Summit in London on Wednesday, Quinn Thompson, chief investment officer at Lekker Capital, said bitcoin’s time is coming.
“I think we’re going to catch up with gold,” he told attendees. “It will start very soon and the movement that is about to happen in Bitcoin and crypto will largely resemble a November 2024 and October 2023 type movement.”
Matt Mena, crypto research analyst at 21Shares, expressed a similar perspective, saying that Bitcoin’s durability despite global uncertainty “underscores how structural demand – anchored by ETF inflows and a more dovish political outlook – continues to provide a floor.” With leverage reduced and monetary easing approaching, Mena predicts that bitcoin could climb as high as $150,000 before the end of the year.
Much depends on the Federal Reserve and expectations that the US central bank will continue to ease monetary policy. In its Beige Book released Wednesday, a summary of economic conditions at the Fed’s 12 regional banks, the central bank reported signs of growing weakness in the labor market, suggesting that market expectations for rate cuts at its final two policy meetings this year remain on track.
Fed Chair Jerome Powell avoided giving details on rates during his remarks Tuesday, but also acknowledged “weakness” in the labor market, reinforcing the market’s belief that further policy easing is on the table.
