Bitcoin News and Forecast as of October 12, 2023
Date: 2023-10-12 Author: Dima Zakharov Categories: BLOCKCHAIN, IN WORLD
Bitcoin's Price Amidst Geopolitical Tensions:
Bitcoin faced a downward trajectory, touching $26,800, primarily due to escalating geopolitical tensions in the Middle East. Investors' decisions to diversify into other assets also played a role. Given these circumstances, the Bitcoin forecast remains conservative in terms of the asset's value.
Hawkish Comments from the US Federal Reserve:
Representatives of the United States Federal Reserve made hawkish remarks during their Wednesday addresses, emphasizing the need for further interest rate hikes to curb inflation.
These hawkish comments followed the International Monetary Fund's (IMF) warning about inflation and economic slowdown in 2024. The IMF recommended that central banks maintain a tight monetary policy, which could delay Bitcoin's price increase.
Global Market Situation and Its Impact on Bitcoin's Forecast:
US stocks saw gains as investors reacted positively to wholesale inflation data, surpassing expectations. They also closely scrutinized the Federal Reserve's protocols to gauge policymakers' views on interest rates.
The Dow Jones Industrial Average increased by approximately 0.3%, while the S&P 500 index rose by 0.4%. The tech-heavy Nasdaq Composite index gained about 0.6%.
Some investors are now betting that the Federal Reserve will not raise interest rates at its November meeting, as the recent rise in bond yields is seen as an effective tightening of central bank policy.
Oil Prices Continue to Decline:
The impact of the Middle East conflict on oil supplies turned out to be limited, causing oil prices to fall further. Crude oil futures dropped by 1.2% to below $85, and Brent crude oil futures fell by 1.1% to below $87.
Short-Term Bitcoin Price Forecast:
Over the past 24 hours, Bitcoin's price has dropped by 3%, nearly 2% in the last week, currently standing at $27,127. The 24-hour low and high were $26,800 and $27,605, respectively.
Despite weak technical charts and indicators, it is expected that Bitcoin's price will rebound from the $26,600 level. A drop to $25,000 seems less likely given the neutral sentiments in the market.
Thus, the Bitcoin forecast for the short term is that its price will remain within the range of $26,500 to $27,500. Significant market volatility is not expected at this time.
