Bitcoin (BTC) is exhibiting a slower-than-usual pace in October, remaining steady near the $111,000 level despite a subdued price movement that contrasts with recent surges in gold and silver markets. Currently, bitcoin is trading around $111,500, down approximately 1.2% over the past 24 hours, while several other cryptocurrencies, including ether (ETH), XRP, Solana (SOL), and Dogecoin (DOGE), have experienced sharper declines ranging from 2% to 3%.
Despite the lull, a number of analysts interpret bitcoin’s stable performance and resilience amid broader market fluctuations as a sign of underlying strength rather than weakness.
During the Digital Asset Summit in London, Quinn Thompson, chief investment officer at Lekker Capital, emphasized bitcoin’s prospective growth trajectory. He suggested that bitcoin is poised to narrow the valuation gap with gold, stating that an upward momentum similar to notable rallies seen in October 2023 and projected for November 2024 could be imminent.
Matt Mena, a crypto research analyst at 21Shares, resonated with this outlook, highlighting that bitcoin’s steadiness amid global economic uncertainties points to robust structural demand. According to Mena, factors such as continued inflows into exchange-traded funds (ETFs) and expectations of more accommodative monetary policies are helping establish a firm support level. He also noted that with the reduction of excess market leverage and anticipated central bank easing, bitcoin has the potential to rise toward $150,000 by the end of the year.
The trajectory of bitcoin’s price remains closely tied to the monetary policy stance of the U.S. Federal Reserve. On Wednesday, the Federal Reserve released its Beige Book, which provides a regional economic overview and indicated emerging signs of softness in the labor market. This development supports market perceptions that the Fed is likely to implement interest rate cuts during its remaining policy meetings in 2025.
Fed Chair Jerome Powell, during recent remarks, refrained from detailing specific rate decisions but acknowledged the labor market’s recent easing, reinforcing the notion that further policy easing could be forthcoming.
Overall, while bitcoin’s price action this October may seem subdued compared to traditional safe-haven assets like gold and silver, expert analysis points to a potentially strong position for the cryptocurrency as monetary policy and macroeconomic conditions evolve. Investors and market watchers are mindful that bitcoin’s path could soon align more closely with the precious metals sector, reflecting its role as a digital store of value in a changing financial landscape.
