Bitcoin Struggles in October Amid Geopolitical Tensions, Analysts Hope for Recovery
Bitcoin (BTC) has had a difficult start to October, typically a bullish month, largely due to rising geopolitical tensions in the Middle East.
Despite this, there is hope for recovery as the month progresses.
Historically, October has averaged a 21.2% return for Bitcoin since 2013. However, this year, BTC dipped below $60,000 before recovering to approximately $61,800, leading to massive liquidations.
In the last week, Bitcoin fell by 6.9%, with Ethereum down 11.2%, Solana (SOL) down 10.9%, and BNB down 9.9%. Data shows that Bitcoin typically gains later in October, with only one positive October 1 since 2013.
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The recent fourth Bitcoin halving in April 2024 and U.S. Federal Reserve interest rate cuts in September are usually bullish signs. However, geopolitical uncertainties and upcoming U.S. presidential elections have overshadowed this positivity.
Despite challenges, some analysts remain optimistic. A Standard Chartered analyst considers the dip below $60,000 a buying opportunity, while Markus Thielen from 10x Research anticipates a crypto rally in Q4 2024, driven by decreasing Bitcoin dominance and rising Ethereum gas fees.
Conversely, BitMEX co-founder Arthur Hayes warns that interest rate cuts might trigger a short-term market crash. Currently, Bitcoin is trading at around $62,000, down 5.5% on the weekly chart.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
