Geopolitical tensions in the Middle East loom over Bitcoin and cryptocurrencies, but not for long, according to analysts.
Ballistic missile attacks from Iran against Israel triggered a market selloff on Oct. 1, with Bitcoin (BTC), Ethereum (ETH), major altcoins, and the total cryptocurrency market tanking some 4%.
Markets are still reeling from tensions in the Middle East. Bitcoin traded under $60,500, and market observers from QCP Capital predicted lower prices before a bounce. QCP analysts said BTC’s technical analysis suggested short-term bearish price action.
Ether also slipped under $2,400, and Solana (SOL) retraced below $137 per crypto.news price data. Although October, historically a green month for digital assets, recorded consecutive red days, QCP surmised that current market conditions only represent a brief trend.
We believe this weakness is temporary, given the strong correlation between crypto and U.S. stocks. As U.S. equities recover, crypto is likely to follow. This correlation highlights that macroeconomic factors are currently the main drivers of risk asset prices
QCP Capital
According to QCP’s Oct. 3 note, expected rate cuts and strong U.S. labor market data should slingshot Bitcoin and altcoins to higher prices.
Bitget chief analyst echoes bullish crypto Q4 sentiment
Bitget Research chief analyst Ryan Lee agreed with the bullish Bitcoin thesis in Q4. In an email shared with crypto.news, Lee noted a 16% drop in trading volume as investors observed geopolitical developments and macroeconomic happenings.
However, Bitget’s expert also cited CryptoQuant data, which shows sustained institutional interest in Bitcoin.
Despite the general downturn, institutional investors continue to buy digital currency at a rate at par or higher than the quantity mined daily, according to CryptoQuant. Currently BTC has sustained over the $60,000 support level and may fluctuate in the $72,000 range, the anticipation for Fed interest rate cuts and market rebound may come from Bitcoin’s historically optimistic Q4s.
Ryan Lee, Bitget Research chief analyst
From: crypto.news
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