On October 20, the Bitcoin (BTC) rate reached $30 thousand for the second time in a week. On Monday, October 16, the Bitcoin rate immediately soared to $30 thousand amid rumors of the approval of a spot exchange-traded fund (ETF) from BlackRock. Almost immediately the message was refuted, and the price of military-technical cooperation fell to $28 thousand.
Despite the fact that the market “jumped” for the first time on false news, the BTC rate, after waiting a few days, continued to grow. At 16:30 Moscow time, BTC is trading at $29.5 thousand, according to CoinGecko.
Experts told “RBC-Crypto” about what could have caused the Bitcoin price to rise to $30 thousand and how the asset will behave in the future.
“The position of buyers has strengthened”
BitRiver financial analyst Vladislav Antonov
Powell announced his intention to tread carefully on rate hikes. This reduces the risk of a sharp slowdown in the global economy and oil demand.
The market considers it unlikely that the Fed will raise rates before the end of the year. According to the CME FOMC, maintaining rates at the Fed meeting on November 1 is estimated with a probability of 99.6%.
The position of buyers has strengthened, but it is necessary not to reduce activity. According to cycles, Bitcoin will be under pressure locally until October 26th. The next target for the cryptocurrency is $32 thousand.
“Diversification of investment portfolios”
Co-founder of the ENCRY Foundation Roman Nekrasov
Against the backdrop of high inflation in the United States, some investors are looking for a way to diversify their portfolio. Shake it up so as to compensate for the depreciation of assets.
One of the alternative ways to hedge inflation risks is by investing in cryptocurrency. And here we are talking primarily about Bitcoin.
No one is saying that the investment portfolio will consist entirely of bitcoins. Investors are simply increasing its share of their investment portfolio a little in the hope that the potential growth of BTC in the halving year (2024) will help compensate for the depreciation of assets associated with high inflation.
Bitcoin is rising in price amid a weakening US dollar. After speeches US Federal Reserve Chairman Jerome Powell on October 19, the dollar index fell overnight from 106.42 points to 105.74 points.
At the same time, all investors obviously are invested into 10-year Treasuries, otherwise their yield would not have reached its highest level since 2007.
I believe that six months before the halving of 2024, Bitcoin will begin to gradually strengthen, perhaps it will be able to end the current year at around $40-45 thousand. The main round of growth should be expected in the period after the halving – on the horizon of 12-18 months.
Source: Cryptocurrency
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