The Bitcoin price leapt 10% in October. Here’s why

Image Source: Getty Images

the Bitcoin (CRYPTO: BTC) price closed September trading at US$18,694, give or take a few dollars depending on your time zone.

As we flipped our calendars to November, BTC he was exchanging virtual wallets for US$20,548.

That puts the original of the world. crypto up to a healthy 9.9% in October.

For some context, the Nasdaq Composite (NASDAQ: .IXIC) ended the month up 3.9%, while here in Australia, the S&P/ASX 200 Index (ASX: XJO) gained 6.0%.

Bitcoin price gains exceed

In addition to the outperformance in October, Bitcoin price movements were less volatile than most crypto investors might have expected.

During the month, the token traded for a low of $18,320 and a high of $20,988, according to data from CoinMarketCap.

Yes, that’s a 14.5% price variance. But remember, Bitcoin gained 9.9% during this time. A fairly smooth ride for the virtual asset known for its volatility.

And it wasn’t just Bitcoin. Most of the altcoins joined the rally in October.

Although inflation still worryingly high, crypto investor sentiment took a bullish turn amid hopes that the US Federal Reserve and other global central banks may not need to raise interest rates as fast or as high as markets have widely valued.

The higher rates have created some turbulent headwinds for cryptocurrencies, which have suffered from bearish selling along with other risky assets such as high-value ones.increase technological actions.

Now what?

Where the price of Bitcoin goes will continue to depend, to a large extent, on interest rates. In particular, the policies adopted by the highly influential Fed.

Remember, Bitcoin hit all-time highs of $68,790 on November 10 last year, as the world neared the end of more than a decade of ever-lower rates.

But October did provide some early signs that Bitcoin price may be decoupling from risky assets such as tech stocks.

Simon Peters, Market Analyst at eToro, explained that crypto had held up well despite some disappointing earnings results from the biggest US tech companies.

That appears to be because the percentage of longer-term holders, generally less likely to sell, hit record highs last month.

“These high levels of ownership indicate why we may be seeing a decoupling between US equities and Bitcoin,” he said.

Peters added:

At the current price, it is unlikely that entities other than Bitcoin miners would want or need to sell Bitcoin, while given stock market conditions and negative forecasts from companies reporting earnings, there is perhaps a greater inclination to Sell ​​shares.