bitcoin is behind its usual October pace, but at least some analysts say its stability near the $111,000 mark indicates strength, not weakness.
Today’s price action will be familiar to frustrated bitcoin bulls, with gold and silver once again rising to new all-time highs and US stocks in the green. Bitcoin, however, remained under pressure, falling 1.2% in the last 24 hours to $111,500. Losses were somewhat larger in the rest of the crypto sector, with ether and XRP falling by 3% and solana and dogecoin falling by approximately 2%.
Patience, analysts say.
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’ll hit gold,” he told attendees. “It will start very soon and the movement that is about to occur in bitcoins and cryptocurrencies in general will resemble a November 2024 and October 2023 type movement.”
Matt Mena, cryptocurrency research analyst at 21Shares, expressed a similar perspective, saying that bitcoin’s durability through global uncertainty is “underscoring how structural demand, anchored by ETF inflows and a more dovish political outlook, continues to provide a floor.” With leverage depleted and monetary easing approaching, Mena projects that bitcoin could rise to $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 the market’s anticipation of rate cuts at its two remaining policy meetings this year remains on track.
Fed Chair Jerome Powell avoided giving details on rates during his comments Tuesday, but also acknowledged “weakness” in the labor market, reinforcing the market’s belief that further policy easing is on the table.
