Bitcoin’s Rare 5% October Drops Often Followed by Quick Rebounds
Bitcoin's October Trends
- Economist Timothy Peterson highlights that Bitcoin’s recent price drop may be temporary, given historical patterns in October.
- Drops larger than 5% have been rare in the last decade, occurring only four times: 2017, 2018, 2019, and 2021.
- Post-drop recoveries ranged from 4% to 21%, except for 2021 when prices fell by another 3%.
Recent Market Movements
- Bitcoin briefly fell to about $102,000 following US President Trump's tariff announcement on China.
- The market quickly rebounded to approximately $112,100 after hitting highs above $126,000 earlier in the week.
Potential Rebound Scenarios
- A repeat of 2019’s 21% surge could see Bitcoin approach $124,000 shortly.
- Analysts suggest a range of outcomes, with some predicting a finish above current levels.
Market Outlook
- Some view the dip as a temporary reset amid an uptrend; others warn prolonged selling pressure due to policy issues.
- Potential triggers for recovery include reduced US-China trade tensions and quicker Federal Reserve interest rate cuts.
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