October Stability: Bitcoin Rise Will Compete with Gold

Recently, the price of Bitcoin (BTC) has been drawing investors' attention with its horizontal movement. However, analysts believe that this calm appearance could actually be a precursor to a major bullish trend. At the beginning of October, while gold and silver raced to new records, the price of Bitcoin managed to hold at the 111 thousand dollars level. While this stagnation has disappointed some investors, experts say it is a sign of resilience rather than weakness.

Particularly, expectations for interest rate cuts from the U.S. Federal Reserve (Fed) and the ongoing inflows of Exchange-Traded Funds (ETFs) are creating a strong foundation for Bitcoin in the last quarter of the year. Quinn Thompson, CIO of Lekker Capital, stated during his speech at the Digital Asset Summit in London that Bitcoin will soon close the performance gap with gold. Thompson said, "We will catch up with gold very soon. Bitcoin and the broader crypto market are on the verge of a sharp movement, just like in November 2024 and October 2023,"

Another analyst, Matt Mena from 21Shares, pointed out that Bitcoin's stable stance against global uncertainties is supported by ETF inflows and the Fed's loosening monetary policy. Mena notes that a large portion of leveraged positions has been cleared, creating the necessary environment for a new rally. The analyst predicts that the price of Bitcoin could rise to 150 thousand dollars by the end of the year.

Additionally, it is worth noting that the Fed's latest Beige Book report indicated signs of weakening in the labor market. This situation strengthened the expectation of interest rate cuts in the two remaining meetings of the year. Fed Chairman Jerome Powell also indirectly supported these expectations by stating in his recent remarks that they have observed a "softening" in the labor market. All these developments contain important points for Bitcoin investors to monitor.