Bitcoin’s price is set to rise as Uptober approaches
As we progress beyond the mid-point of September, the focus of the crypto community shifts towards October, affectionately dubbed 'Uptober' due to the historically strong performance of BTC and various altcoins during this period.
Here are three (plus a bonus) key indicators suggesting a potential Bitcoin price rally by the end of 2024.
Recent insights from CryptoQuant have shed light on two pivotal trends among bitcoin whales. Firstly, newcomers to this group have been engaging in a buying spree over the last 155 days, with their average purchase price pegged at $62,038. This positions them at a slight unrealized loss of under 5%.
Despite this, on-chain data reveals that these newly minted whales are not offloading their holdings at the current rates. Instead, they're bolstering their positions, reflecting a long-term bullish outlook on bitcoin.
Conversely, the veteran whales who've been in the space for over 155 days exhibit unrealized gains, having bought in at an average price of $27,843. Despite their investments more than doubling, they display a strong preference for holding onto their assets.
Miners are integral to maintaining the blockchain infrastructure of Bitcoin, and their role cannot be overstated. Post the 2024 halving, they'll be rewarded with 450 BTC daily. The accumulation patterns of these crucial participants, especially the larger entities, can greatly influence Bitcoin's market dynamics.
CryptoQuant highlights that miners are currently enjoying an approximate profit margin of just below 40%, with an average base acquisition cost of $43,179. Despite this profitability, there's no trend indicating a widespread desire to sell, suggesting a potential hold or slow sell-off strategy.
The principal risk seems to emerge from Binance traders, known for their quick sell-off habits to capture profits. Nevertheless, recent tendencies show a pivot towards buying, coupled with a consistent decrease in BTC reserves across exchanges, mitigating the risk of immediate sell-offs.
While there's speculation that potential rate cuts by the US Federal Reserve are already factored into market prices, the actual effect of such reductions across the crypto landscape warrants attention. Historical data suggests that lower borrowing costs (resulting from reduced interest rates) often correlate with upticks in crypto prices, and vice versa.
With several major global central banks, including those of Canada, the UK, and the European Central Bank, already lowering rates, Fed chair Jerome Powell hinted last month at a similar move by the US. The upcoming FOMC meeting slated for September 18 and 19, which could see rate cuts ranging from 25 to 75 basis points, aligns closely with October – a month traditionally bullish for Bitcoin.
