30s Summary

Between October 27 and 28, the value of Bitcoin climbed by 3.2%, almost reaching $69,200. Amid global geopolitical and socioeconomic events such as the Middle East tensions, rising oil prices, and inflation concerns, traditional investors might consider alternatives like Bitcoin. Upcoming US inflation data and the Federal Open Market Committee meeting also hold potential influence on Bitcoin’s status. A larger rally for Bitcoin is possible in the post-US election period and beyond, with certain factors potentially discouraging widespread adoption. With inflation potentially​ higher than expected, Bitcoin becomes more attractive due to its predictability.

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Hey, Bitcoin lovers! Between Oct. 27 and 28, the price of Bitcoin went up by 3.2%, and it came super close to $69,200 – a level it hasn’t reached in a week. Some resistance was experienced during this surge, but don’t worry, Bitcoin optimism is still strong, especially when looking at the recent events happening around the world.

Notice how oil prices dropped by more than 5.5% on Oct. 28? That’s because there’s this ongoing conflict in the Middle East that hasn’t really affected energy production or transportation routes. Israel had launched some attacks on Iran during the last weekend, but no oil or nuclear facilities were hit, says CNBC.

So, those day traders who initially put their money on oil to safeguard against Middle East tensions might now start considering other assets. CNBC mentions there’s been a sort of “shadow war” between Israel and Iran for over a year. U.S. officials have been warning Israel not to take aim at Iran’s nuclear sites.

But, you might ask, “how does all this uncertainty benefit Bitcoin price?” Well, lately, concerns about inflation could lead traditional finance folks to seek alternatives – like Bitcoin. Sure, a bit of inflation may be good for companies to earn more in the short term. However, inflation that goes on for too long can put a damper on consumer spending.

You know how company earnings often reflect past consumer demand? So even though the companies report good numbers from previous quarters, inflation can still affect current spending trends.

Keep your eyes open for the next US inflation report is due on Oct. 31, and the Federal Open Market Committee meeting on Nov. 7. Analysts expect a 0.3% increase in the Core Personal Consumption Expenditures (PCE) index for September, a bit higher than August’s 0.1% rise. The Fed really values data from the PCE index and labor market for policy decisions.

Wil Stith, a bond portfolio manager from Wilmington Trust predicts a potential pause in Federal Reserve decisions. Right now, the consensus is on more interest rate cuts. But the Fed might want to take a step back to consider any risks related to overheating the economy.

And let’s not forget, the US presidential elections are less than 10 days away. This usually makes investors a bit risk-averse, preferring to stick to cash and short-term government bonds to brace for any election surprises.

Once the election dust settles, people might be more comfortable investing in riskier assets, like Bitcoin. In terms of socio-politics, the conditions seem to favor a stronger Bitcoin rally. However, there are certain factors that could discourage bigger moves by traders.

Remember Bitcoin’s appeal is its fixed and predictable monetary policy. So, if inflation is higher than expected, reducing chances for more economic stimuli from central banks, Bitcoin becomes more attractive. Also, if Kamala Harris wins the presidency, it might not instantly affect digital assets, but it could mean clearer rules around crypto.

In short, even if Bitcoin doesn’t hit a new all-time high in 2024, the early part of 2025 looks pretty optimistic for price growth. Remember folks, this is only general info and not legal or investment advice. So, always do your own research before making major financial decisions.

Source: Cointelegraph