Tag: slowdown

  • Bitcoin’s October slowdown masks underlying strength, analysts say

    Bitcoin’s October slowdown masks underlying strength, analysts say

    Bitcoin's October slowdown masks underlying strength, analysts say

    • Bitcoin is lagging in October, but analysts say its stability signals strength.
    • The “digital gold” is failing to rally alongside gold, which is hitting new highs.
    • One analyst says a massive move, similar to late 2024, “will start very soon.”

    A strange and deceptive calm has settled over the Bitcoin market.

    While its analog cousin, gold, is once again surging to new all-time highs and US stocks are basking in the green, the king of crypto remains stuck in a frustrating holding pattern, stubbornly refusing to join the party.

    But for some of the market’s sharpest observers, this is not a sign of weakness; it is the quiet coiling of a spring, the calm before a powerful and imminent storm.

    The price action has been a familiar and frustrating story for the bulls. Bitcoin has slipped 1.2 percent over the past 24 hours to $111,500, with the rest of the crypto sector seeing even steeper losses.

    But beneath this sluggish surface, a powerful undercurrent of institutional demand and a shifting macroeconomic tide are quietly building a case for a major breakout.

    A prophecy of a powerful move

    Speaking at the Digital Asset Summit in London on Wednesday, Quinn Thompson, the chief investment officer at Lekker Capital, delivered a bold and bullish prophecy.

    He argued that Bitcoin’s current decoupling from gold is a temporary anomaly that is about to violently correct itself.

    “I posit that we will catch up to gold,” he told the audience. 

    “It will start very soon and the move that is about to come in bitcoin and crypto broadly will resemble a November 2024 and an October 2023 type of move.” 

    These were periods of explosive, parabolic growth, and Thompson’s prediction is a clear signal that he believes a similar fire is about to be lit.

    A ‘floor’ of demand, a path to $150,000

    This view is not held in isolation. Matt Mena, a crypto research analyst at 21Shares, voiced a similar outlook, arguing that Bitcoin’s remarkable durability in the face of global uncertainty is a testament to its underlying strength.

    This, he says, is “underscoring how structural demand—anchored by ETF inflows and a more dovish policy outlook—continues to provide a floor.”

    With the speculative leverage recently flushed out of the system and a new era of monetary easing on the horizon, Mena is now projecting that Bitcoin could climb to $150,000 before the end of the year.

    The shadow of the Fed looms large

    The key to unlocking this potential, all agree, lies with the US Federal Reserve. The market’s conviction that the central bank is on a firm path to continue easing its monetary policy is the primary engine of the current “risk-on” mood.

    That conviction was strengthened on Wednesday with the release of the Fed’s Beige Book, which reported growing signs of weakness in the US labor market.

    Fed Chair Jerome Powell himself has acknowledged this “softness,” a clear signal to the market that further rate cuts are very much on the table for the two remaining policy meetings this year.

    For now, Bitcoin waits, a sleeping giant biding its time. But if the analysts are right, it is a slumber that is about to come to a spectacular and explosive end.

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  • Bitcoin options market signals ‘summer slowdown’: Glassnode

    Bitcoin options market signals ‘summer slowdown’: Glassnode

    Bitcoin Price Outlook

    • Bitcoin has experienced a significant drop in spot and futures volumes, which signals a potential summer lull.
    • Low volatility and thinning liquidity could see a consolidation phase with a potential pullback to $100,000.
    • A resurgence in trading volume could push BTC above $110k and its ATH.

    Bitcoin (BTC) continues to hover near the psychological $110,000 level as well as its all-time high, but market analysts are pointing to a potential summer slowdown.

    According to blockchain data provider Glassnode, trading volumes are experiencing a significant decline, raising questions about the cryptocurrency’s short-term trajectory.

    With spot volume dropping to $5.02 billion and futures volume falling to $31.2 billion, both the lowest in over a year, the stage appears set for a period of reduced market activity.

    BTC options markets suggest a slowdown

    Glassnode’s recent market outlook highlights a trend in the Bitcoin options market where implied volatility across all expiries (ranging from one week to six months) is approaching all-time lows.

    The analytics platform says the levels seen today are back to those seen in mid-2023.

    Reduced volatility suggests that traders are anticipating less price movement in the near term, a common occurrence during the summer months when market participants often take holidays and trading activity wanes.

    Notably, data shows a contrast between Bitcoin’s price, which has steadily climbed toward $110,000, and the diminishing spot and futures volumes.

    The volumes appear to have peaked and point to a downturn, with the divergence indicating thinning liquidity.

    The options market’s low volatility pricing reflects a cautious outlook, potentially signaling a consolidation phase as the market digests recent gains.

    Bitcoin price prediction

    A lull is further contextualized by historical patterns, and traders could be looking for profits after significant rallies.

    However, the low-volume environment also heightens the risk of sharp price swings, as even modest orders could trigger outsized reactions in a thinly traded market.

    On the bullish side, Bitcoin’s ability to hold above key support levels and near $110k despite declining volumes suggests underlying strength.

    Potentially, this strengthens long-term optimism amid institutional adoption, including likely moves by Elon Musk.

    Notably, CoinShares has shared details showing digital asset investment products saw over $1 billion in inflows last week.

    This marked the 12th consecutive week of inflows, with Bitcoin recording $790 million in inflows over the week.

    Other assets such as Ethereum saw $226 million.

    Amid this, analysts at CryptoQuant say the BTC bull run remains intact.

    However, the low implied volatility and reduced trading activity point to a consolidation range.

    BTC could thus break to a new ATH above $112k or see a short-term pullback to support.

    In this case, the psychological level of $100k will be key.



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