Originally published on: October 28, 2024
Bitcoin, with a price of $72,467, saw an impressive 3.2% increase between October 27 and October 28, reaching the $69,200 mark for the first time in a week. Despite facing some resistance during the rally, Bitcoin enthusiasts are optimistic about a sustained uptrend, especially in light of recent socio-political and economic developments.
As global tensions ease, and concerns about the ongoing conflict in the Middle East fail to impact energy production significantly, traders are looking at alternative assets for protection. The recent attacks by Israel on Iran have not targeted oil or nuclear facilities, causing traders to seek alternative safe havens.
The looming threat of inflation is also pushing traditional finance investors towards alternative assets like Bitcoin. As inflation continues to rise, consumer spending may decrease, impacting corporate earnings in the long run.
With the upcoming US inflation report and the Federal Open Market Committee meeting, analysts are expecting a 0.3% increase in the Core Personal Consumption Expenditures index for September. These indicators play a crucial role in the Fed’s policy decisions moving forward.
Investors are also closely watching the US presidential elections, which are just around the corner. The uncertainty surrounding the outcome of the elections is driving investors towards cash and short-term government bonds to hedge against potential surprises.
Regardless of the election outcome, a reduction in uncertainty post-election could lead to increased investments in risk-on assets like Bitcoin. The current socio-political climate seems favorable for a sustained Bitcoin rally, despite underlying risks that may hold back significant bullish moves.
Factors such as higher-than-expected inflation, a more transparent approach to crypto regulation under a potential Kamala Harris presidency, and the fixed monetary policy of Bitcoin all contribute to a positive outlook for the cryptocurrency.
In conclusion, while a new all-time high for Bitcoin may not be achieved in the near future, early 2025 could see favorable conditions for significant price appreciation. Stay informed by subscribing to the Markets Outlook newsletter for critical insights on investment opportunities and trading strategies.
