- Bitcoin was poised to rally this week.
- However, rising tension in the Middle East blocked the rally.
A version of this story appeared in our The Roundup newsletter on October 4. Sign up here.
Howdy! Eric here.
Bitcoin should be on a tear right now.
That’s at least according to analysts who predicted a rally to kick off at the start of the week. They had reason to be bullish.
Historically, the final quarter is the $1.2 trillion cryptocurrency’s best period of the year. Bitcoin has rallied some 90% during the period over the past decade, according to CoinMarketCap analysts.
This year seemed no different.
The Federal Reserve had finally cut interest rates and more are likely to follow. CME Group’s FedWatch tool put the odds of another 0.5% rate cut at 30% in November and a more modest 0.25% cut at 70%.
Elsewhere, spot Bitcoin exchange-traded funds saw inflows again, and Beijing’s initiatives to supercharge the Chinese economy has unleashed a wave of liquidity into the market.
Even Vice President Kamala Harris had tentatively embraced digital assets, further signalling how Capitol Hill has warmed to crypto.
The stage was set for Bitcoin to skyrocket to new heights.
Then Iran fired missiles against Israel, sparking fears of broader conflict.
Bitcoin trades at just over $61,000, almost 7% down from seven days ago.
Now traders are left with one question: When will Bitcoin rebound?
Before the end of the year, suggests a BlackRock analysis of Bitcoin moves after such events.
As Liam Kelly reported, the asset management giant found that Bitcoin rallied by double digits 60 days after major geopolitical events.
And the factors that analysts say should’ve catapulted Bitcoin to a new record are still there.
In the meantime, the crisis provides investors with the opportunity to buy Bitcoin on the cheap, says Quinn Thompson, founder of hedge fund Lekker Capital.
It’s “a no-brainer,” he said this week.
ICYMI
OpenSea axed NFTs that behaved like securities for years before SEC scrutiny
OpenSea has delisted and disabled NFTs deemed to behave like financial instruments, despite mocking regulators going after NFTs for that very reason, Ben Weiss reports.
Satoshi holds $67bn in Bitcoin. Here’s a ranking of the other top holders
While Bitcoin creator Satoshi Nakamoto holds the most Bitcoin, other holders are catching up, Aleks Gilbert reports.
A Messari crypto conference sponsor is tax dodger who says 99% of Americans shouldn’t pay up
Freedom Law School was a sponsor of Messari’s crypto conference. However, attendees took issue with the organisation’s tax-dodging stance.
Post of the week
US congressman French Hill drew attention to Binance’ executive Tigan Gambaryan, who is still jailed in Nigeria.
Thank you @USAmbUN for stressing the importance of Tigran Gambaryan’s release.
— French Hill (@RepFrenchHill) October 1, 2024
I have repeatedly called for the Nigerian gov to immediately release Tigran and won't stop doing so until he is back safely on American soil. https://t.co/QU39zKsrgO
Eric Johansson is DL News’ News Editor. Got a tip? Email at eric@dlnews.com.
