‘Time’ to turn around? Why Bitcoin, Ethereum and Crypto could be due for a huge price boom in October
Bitcoin
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Bitcoin price, down about 70% from all-time highs, has found a floor of about $20,000 per bitcoin. The Ethereum price has seen a similar decline – although some believe it may be about to blow bitcoin out of the water.
Now, as expectations that the Federal Reserve may be about to pivot in its flight against inflation reach fever pitch, a closely watched analyst has predicted that the price of bitcoin and ethereum may be about to “outperform most major assets.”
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The bitcoin price has historically risen in October with the bitcoin, ethereum and crypto market … [+]
“As the waning economic tide turns, we see the propensity of bitcoin, ethereum and the Bloomberg Galaxy Crypto Index to continue to outperform most major assets,” Mike McGlone, senior commodities strategist at Bloomberg Intelligence, wrote in a report this week, noting that since 2014, October has been “the best month for bitcoin,” with the bitcoin price averaging an increase of around 20%.
McGlone pointed to a “durable peak” in commodity prices — “the only major asset class that will rise in the first half of 2022” — as a potential bottom signal for bitcoin even as the U.S. Federal Reserve and other central banks continue to ramp up rate hikes.
“Interest rate hikes by more central banks than ever are a strong headwind,” McGlone wrote, “but it is the potential for the benchmark crypto to shift toward becoming a risk-on asset, like gold and US Treasuries, that could play out in [the second half of 2022].”
This year, the Federal Reserve has started a series of interest rate increases in the fight to bring down skyrocketing inflation. On Friday, the latest US jobs report will provide the clearest sign yet of whether the Fed’s rate hikes have cooled the economy.
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The Bitcoin price has climbed in the last 24 hours despite the fact that share prices have fallen in the run-up to … [+]
“The current optimism is akin to what the stock market had before the consumer price index (CPI) announcement, where they expected inflation to slow from July and believed the Fed would clamp down on rate hikes,” Yuya Hasegawa, crypto market analyst at Bitbank, wrote in an email mail message, warning that “current optimism may be betrayed as a couple of Fed members appear ready to compromise economic activity to some extent to bring down inflation.”
Meanwhile, some crypto market watchers are feeling positive on ethereum following the long-awaited energy-saving fusion upgrade, which was completed last month.
“Ethereum’s move to proof-of-stake could help it build a base above $1,000,” McGlone wrote, adding, “the nascent tech and more volatile No. 2 crypto tends to outperform the stock index on the way up, but the merger could mark an inflection point for ethereum that also beats the Nasdaq 100 when it declines.”
