10x Research's recent analysis suggests that Bitcoin may be poised for a substantial rally by late 2024.
The report examines yearly trends and identifies a potential shift in market dynamics influenced by seasonal factors.
Marcus Thielen, the founder of 10x Research, expressed optimism regarding the anticipated release of funds from FTX, projecting an influx of $5-$8 billion that could boost positive market sentiment.
However, he noted a possible downturn in risk assets due to the Federal Reserve’s adjustments regarding the S&P 500, hinting at a potential rate cut, which could lead investors to realign their portfolios for 2025.
The report highlights various external factors that might impact Bitcoin’s performance by year-end, with liquidity being a key element. Macroeconomic influences, such as Federal Reserve interest rate decisions, inflation, and election-related dynamics, are also seen as significant contributors.
While there are encouraging signs, the report urges caution, reminding readers of Bitcoin’s historical volatility and the possibility of substantial price drops. Important levels to monitor include the previous cycle high of $68,330 and the 21-week moving average. Effective risk management may necessitate selling during turbulent times, even if it means accepting less favorable prices.
An analyst has outlined potential scenarios for Bitcoin’s price, projecting it could close 2024 within the range of $108,000 to $155,000 if historical trends continue.
Bitcoin has been climbing steadily, with some of its momentum tied to recent moves by the Federal Reserve.
With October on the horizon, investors are eagerly anticipating what the month might hold for Bitcoin and the broader crypto market.
Jeff Park, the head of alpha strategies at Bitwise Asset Management, argues that Bitcoin ETF options are unlikely to diminish Bitcoin’s inherent volatility.