Hold onto your hats, folks! The crypto rollercoaster is back in action, and it's got everyone gripping their seats. Just when we were cruising through “Uptober” with all the bullish vibes, a sudden turn has everyone talking doom and gloom for Bitcoin.
In a dramatic twist, Bitcoin nosedived by around $4,000 after the Iranian missile attack on Israel, stirring up a storm of fear across crypto social media. But hey, if you take a step back, you’ll see that BTC is still hanging out in its usual range-bound channel – a pattern it's been dancing to for the past six months.
On October 2, Benjamin Cowen, the founder of ITC Crypto, threw some cold water on our bullish dreams with a rather bleak forecast. According to him, if history is our guide, Bitcoin might follow its 2019 script where it initially rallied post-Federal Reserve rate cuts but then took a nosedive to the 100-week moving average. If this deja vu happens, we could be looking at BTC prices around $42,000 by mid-November.
But before you hit the panic button, remember that 2019 was smack in the middle of a bear market and not a halving year, which makes a big difference!
On the flip side, some market wizards are keeping the faith. Analyst Miles Deutscher highlighted a bunch of reasons to stay bullish: increasing global liquidity, rate cuts, economic stimulus in China, the upcoming US election with crypto on the agenda, and the historically bullish Q4 period for crypto. Sounds like a recipe for optimism, right?
Then there's ‘Ash Crypto,' who told his 1.1 million followers that this is just a “big shakeout.” He predicts October will start with a dump and then see some sideways action before things really take off. Buckle up for a wild ride, folks!
But not everyone is feeling the love. Bitcoin miners, in particular, might be a bit gloomy. According to JPMorgan analysts, Bitcoin mining profitability hit a rough patch in September, marking the third month in a row of declining profits. This is mainly due to the Bitcoin halving event in April, with transaction fee revenue for the month only hitting $13.86 million.
So, whether you're clutching your pearls or holding onto your hats, it's clear that the crypto world is never boring. Stay tuned and keep those seatbelts fastened!
