Crypto traders are anticipating a bullish October for Bitcoin, with some predicting a potential record-breaking price surge this week.
October and Fourth Quarter Overall Historically Positive for Bitcoin
Traditional data shows that the fourth quarter has historically been a strong period for cryptocurrencies, with Bitcoin rallying an average of 90% during this time over the past decade.
“Expect fireworks,” said David Brickell, head of international distribution at FRNT Financial, and former forex trader Chris Mill, in their newsletter. “We anticipate we could hit record highs for Bitcoin this coming week.”
This bullish sentiment is echoed by options traders on Deribit, where contracts paying out if Bitcoin reaches $100,000 are the most traded for the December 27 expiry.
China’s economic stimulus and the Federal Reserve’s monetary policy are key factors driving the potential rally.
Beijing’s recent announcement of a $284 billion bond issuance and a cut in bank reserve requirements is expected to inject significant liquidity into the Chinese economy. This could indirectly benefit Bitcoin, which has shown a correlation with broader economic trends.
Meanwhile, investors will be closely watching Jerome Powell’s speech at the National Association of Business Economics on Tuesday and the US employment data due on Friday for clues about the Federal Reserve’s future interest rate policy. A potential rate cut could further fuel risk appetite and benefit Bitcoin.
