Bitcoin’s fabulous ‘Uptober’ could boost price to $40k with some help from Central Banks
Last Updated on 6 November 2023 by CryptoTips.eu
The largest digital currency has had a fantastic month of October, also known in the cryptosphere as ‘Uptober’ because of it’s historical positiveness, and it could actually become even better. Central banks can deliver a lot of good news this week and send Bitcoin to $40k.
Powell
The geopolitical situation in the Middle East could cause stock markets to crash while central banks could send them in the opposite direction this week, much higher.
Bitcoin can only go one way it seems, and that is higher (because in times of geopolitical turmoil it is seen as a kind of ‘safe haven’, together with gold, which is now also trading above $2,000 again and up 10 % recorded since the start of the war in Israel).
This year, the price of Bitcoin has increased by 87%. Investors expect that the banking crisis in the US will force the US Federal Reserve (Fed) to stop raising interest rates. Until now, they have argued that this digital currency will benefit from a low interest rate… pic.twitter.com/0xKoFl1Xxa
— chelsae 🧊 (@chelsaee123) October 30, 2023
Jay Powell, the chairman of the US Federal Reserve, will inform global media on Wednesday whether the world’s largest economy is ready to pause or even cut interest rates again. Unless he says that interest rates should rise again (which no one expects), that should be good news for Bitcoin.
Inflation
There is also European inflation, which will make clear today that it is well under control thanks to the interest rate increases by Christine Lagarde and the ECB.
Germany: inflation falls to 3.8% year-on-year in October (official)
— CGTN Europe (@CGTNEurope) October 30, 2023
When the economic climate improves, more investors want to invest in risky investments. Since the tech sector has not really been able to show good results in recent weeks, it seems that Bitcoin can benefit from this.
Spanish core inflation prints at 0.4% MoM, which is well below typical seasonal prints of 0.8-0.9% MoM in October (remember that the data is not adjusted for seasonality)
— AndreasStenoLarsen (@AndreasSteno) October 30, 2023
Very very very soft inflation data from Europe as we had forecasted
In other words, a next weekend with a Bitcoin price of $40k seems very optimistic, but if all goes well this week it is indeed a possibility.
