Originally published on: October 04, 2024
As October kicks off, Bitcoin’s performance may not be meeting expectations, but analysts believe it might be too soon to determine the trajectory for the rest of the month. According to crypto analyst Ryan Lee from Bitget, investors are currently closely monitoring broader economic events which could be impacting the cryptocurrency market.
Despite a 5.76% decrease in Bitcoin’s value since September 27, traders are cautious about making predictions for the entire month of October based on the current trends. CryptoQuant contributor Axel Adler emphasized that the way October has started does not necessarily indicate how it will end.
One notable development is the 16% drop in spot Bitcoin trading volume since October 1. This decline in sentiment is attributed to investors opting to adopt a risk-off-asset approach due to macroeconomic uncertainty, as explained by Lee. Various macroeconomic factors such as expectations of further Fed rate cuts, the upcoming US presidential election, and tensions in the Middle East are contributing to this cautious sentiment among investors.
Despite these challenges, Lee remains optimistic about the potential for a short-term 18% price surge for Bitcoin once the market conditions become clearer. Additionally, institutional investors continue to show interest in digital currencies, with daily purchases matching or exceeding the amount of Bitcoin mined.
For instance, recent data from Farside indicates that spot Bitcoin exchange-traded funds (ETFs) in the US have attracted over 18,500 BTC, equivalent to over $1.1 billion at current prices, within just 10 months.
While this article does not provide investment advice, it highlights the importance of conducting thorough research and analysis before making any financial decisions in the volatile cryptocurrency market. Stay informed and monitor market developments to make informed investment choices.
