Bitcoin Faces Uncertainty Despite October Hopes Amid Trade Tensions
Bitcoin, which has traditionally shown a bullish trend in October, is currently experiencing turbulence. While the cryptocurrency has historically risen in this month, this year presents a different scenario, with some analysts suggesting that Bitcoin could dip below $100,000 in the short term.
According to CoinMarketCap, Bitcoin has fallen by 2.9% over the past month. Earlier this month, it briefly surpassed $120,000 but is now trading around the $110,000 level. Over the last decade, Bitcoin has recorded gains in October every year except in 2018, leading to expectations that this trend would continue in 2023.
However, escalating trade tensions between the United States and China have dampened investor sentiment. On November 11, President Donald Trump announced that the U.S. would impose an additional 100% tariff on China in response to its control over rare earth exports. Following Trumps remarks, the cryptocurrency futures market saw a staggering $27 billion liquidated in just one day.
Jeff Kendrick, head of research at Standard Chartered, predicts that due to the U.S.-China trade war, Bitcoin may remain below $100,000. John Glover, Chief Investment Officer at Raedon, also noted that the recent drop below $105,000 has signified the end of the bullish market, suggesting that Bitcoin might fall to the range of $70,000 to $80,000.
Despite the short-term outlook, long-term forecasts appear more optimistic. Kendrick believes that despite significant forced liquidations and Trump’s tariff threats, Bitcoin could surge past $200,000 by year-end. He anticipates that continued capital inflows into Bitcoin spot exchange-traded funds (ETFs) will drive price increases.
Additionally, the possibility that the U.S. Federal Reserve will end its quantitative tightening could provide further momentum for Bitcoin’s price recovery. Overall, while the immediate future seems uncertain, the potential for long-term growth remains a topic of interest among investors.
According to CoinMarketCap, Bitcoin has fallen by 2.9% over the past month. Earlier this month, it briefly surpassed $120,000 but is now trading around the $110,000 level. Over the last decade, Bitcoin has recorded gains in October every year except in 2018, leading to expectations that this trend would continue in 2023.
However, escalating trade tensions between the United States and China have dampened investor sentiment. On November 11, President Donald Trump announced that the U.S. would impose an additional 100% tariff on China in response to its control over rare earth exports. Following Trumps remarks, the cryptocurrency futures market saw a staggering $27 billion liquidated in just one day.
Jeff Kendrick, head of research at Standard Chartered, predicts that due to the U.S.-China trade war, Bitcoin may remain below $100,000. John Glover, Chief Investment Officer at Raedon, also noted that the recent drop below $105,000 has signified the end of the bullish market, suggesting that Bitcoin might fall to the range of $70,000 to $80,000.
Despite the short-term outlook, long-term forecasts appear more optimistic. Kendrick believes that despite significant forced liquidations and Trump’s tariff threats, Bitcoin could surge past $200,000 by year-end. He anticipates that continued capital inflows into Bitcoin spot exchange-traded funds (ETFs) will drive price increases.
Additionally, the possibility that the U.S. Federal Reserve will end its quantitative tightening could provide further momentum for Bitcoin’s price recovery. Overall, while the immediate future seems uncertain, the potential for long-term growth remains a topic of interest among investors.
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