Bitcoin investors are preparing for an eventful week with claims that BTC could reach record levels this week.
October has historically been a bullish month for cryptocurrencies, and some analysts are predicting a similar trend this year.
Over the past decade, Bitcoin has gained an average of 90% in the fourth quarter, according to CoinMarketCap.
“Expect fireworks,” David Brickell, head of international distribution at FRNT Financial, and former forex trader Chris Mill wrote in their newsletter “Connecting the Dots.” They believe Bitcoin could reach new all-time highs in the coming days as market conditions become ripe for a major rally.
The bullish outlooks are reflected by activity on Deribit, where options that will pay out if Bitcoin surpasses $100,000 by Dec. 27 are the most traded options, pointing to strong market optimism for a new peak before the end of the year.
There are two major factors fueling this bullish sentiment: China’s economic stimulus and the Fed’s upcoming moves. Beijing has recently launched a series of initiatives to stimulate its economy, including issuing $284 billion in bonds and cutting reserve requirements by 0.5% for banks. Analysts expect these moves to inject significant liquidity into global markets, further boosting Bitcoin’s price.
Following these announcements, Bitcoin rose 5% to $66,300, its highest level since July. The price has since settled around $63,000, but market watchers remain optimistic that further gains are imminent.
Investors are also awaiting Fed Chairman Jerome Powell's speech to the National Association of Business Economics on Tuesday and the latest U.S. employment data due on Friday.
*This is not investment advice.
