Bitcoin had a rough start to October, a month that’s usually good for the cryptocurrency. Geopolitical tensions in the Middle East are partly to blame. But some people still think Bitcoin will recover later this month.
A Rocky Start
October is historically Bitcoin’s best month, with an average gain of 21.2%. But this year, things haven’t gone as planned. Bitcoin briefly dipped below $60,000, causing some investors to sell their holdings. Over the past week, Bitcoin has dropped by almost 7%, and other cryptocurrencies have taken even bigger hits.
History Suggests a Turnaround
While the beginning of October hasn’t been great for Bitcoin, historical data shows that the later part of the month is usually much better. In fact, the last few days of October have been good for Bitcoin more often than not.
Factors Affecting Bitcoin’s Price
Bitcoin’s price is influenced by a lot of things, including:
- Halving: Bitcoin’s supply is cut in half every four years, which is usually bullish for the price. The last halving happened in April 2024.
- Interest Rates: When the US Federal Reserve lowers interest rates, it can be good for Bitcoin. The Fed cut rates in September.
- Geopolitical Events: Uncertainties in the world, like the situation in the Middle East, can make people nervous and cause them to sell their Bitcoin.
- US Election:
The upcoming US presidential election in November 2024 could also impact Bitcoin’s price.
Bullish Predictions
Despite the recent downturn, some analysts are optimistic about Bitcoin’s future. They point to things like:
- Decreasing Bitcoin Dominance: Bitcoin’s share of the cryptocurrency market is shrinking, which could mean more people are investing in other cryptocurrencies.
- Rising Ethereum Gas Fees: Higher fees on the Ethereum network could make people look for alternatives, like Bitcoin.
However, not everyone is so optimistic. Some experts think that interest rate cuts could actually lead to a short-term market crash.
What’s Next?
It’s still too early to say for sure what will happen to Bitcoin in the coming months. But one thing is clear: the cryptocurrency market is volatile, and things can change quickly.
