Perfect Storm for Bitcoin is Brewing, According to Analysts
- Susan SarandonOriginal
- 2024-10-29 15:18:15623browse
It seems Bitcoin is finally breaking out of a trading zone it has been in for much of the past few months. BTC has been rallying from a low US$53
Bitcoin (BTC) price action has been rallying to new highs this week, and now BTC price is close to touching the US$70,000 (AU$106,218) mark for the first time since June.
However, despite the trend seemingly pointing up, and suggesting that the price swings of the past few months could be a thing of the past, analysts at Bitfinex believe we’ll see a bit more volatility.
Perfect Storm for Bitcoin is Brewing, According to Analysts
In their most recent market analysis report, they wrote that “driven by a potent mix of geopolitical uncertainty, macroeconomic factors, and the intensifying “Trump Tradeˮ narrative, BTC volatility has intensified”.
As a Trump win is largely seen as bullish for risk assets such as Bitcoin, the “correlation between Trumpʼs election odds and Bitcoinʼs upward trajectory has increased”, the report added.
And, as anticipation around the US election is building, the analysts remind us that the fourth quarter of a halving year is usually bullish “with a median quarterly return of 31.34 percent”. Combine the historically strong seasonality effect with currently high levels of open interest and you get a “perfect storm”, according to the Bitfinex analysts.
Although the analysts are confident about the long-term outlook for Bitcoin, they expect short-term volatility to be high, regardless of who wins the election, adding that the “market is bracing for potential turbulence”.
Tether Stablecoin Depegs on Less Than Favourable News
Meanwhile, the largest stablecoin, USDT, is headed for some headwinds. As reported, Tether faced some rumours that US authorities are investigating it, despite its CEO brushing the reports aside calling them “pure speculation”.
And it seems that the news, true or not, had an effect on the USDT price. Analysts at Kaiko report that the rumours about a money laundering and sanctions-evasions probe have led to panic selling of USDT.
This has pushed USDT to its lowest levels this year, with the token depegging to US$0.994.
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