Ethereum picked as one other winner
Merkle Capital, a crypto funding advisory, expects rising Bitcoin costs and elevated cryptocurrency investments this month due to the worldwide development of falling interest rates.
Woramet Chansen, funding advisor at Merkle Capital, mentioned Bitcoin costs rose by greater than 25% in September after the US Federal Reserve minimize rates for the primary time in 4 years by 0.50 share factors.
“That was a key turning level out there cycle, encouraging traders to take extra dangers and presenting a chance for lengthy-time period digital asset funding,” he mentioned.
“Though the worth of Bitcoin reached an all-time excessive, different cryptocurrencies haven’t been ready to document the identical lofty peaks.”
In Mr Woramet’s view, Bitcoin and different cryptocurrencies, particularly Ethereum, are possible to develop considerably this month given the Fed’s dot plot in September.
The dot plot advised 2.5 share factors of complete interest fee cuts by the top of 2026, together with the discount final month. This would cut back the fed funds fee goal vary to 2.75-3.00% in 2026.
“This means a great alternative trying ahead for threat belongings based mostly on fundamentals and statistics,” he mentioned.
In the meantime, stablecoin provide is at its highest stage in two years, indicating the worth of money within the crypto market.
“The stablecoin provide being at an all-time excessive is a vital instance of the rising confidence of traders,” mentioned Mr Woramet.
The market cap of altcoins, excluding Bitcoin and Ethereum, has elevated by greater than 25%, passing an necessary take a look at stage over the previous six months, mentioned the funding agency. This means investor confidence within the crypto market, particularly the Ethereum ecosystem, which led good points of different currencies, he mentioned.
Mana Khanijou, chief industrial officer at Merkle Capital, mentioned a threat issue is the escalation of geopolitical conflicts.
“If that occurs, it might trigger panic promoting of varied belongings, reversing the present financial restoration path,” mentioned Mr Mana.
Nonetheless, the short- to medium-time period prospects are constructive for crypto funding, he mentioned.
Sukit Udomsirikul, managing director and head of analysis at InnovestX Securities, mentioned after passing the halving interval, the Bitcoin value is in a spread of US$50,000-55,000.
It is a affordable value based mostly on demand and provide knowledge, he mentioned. However the weak US greenback and decrease interest rates are elements supporting the Bitcoin value.
One issue to monitor is the US presidential election in early November, mentioned Mr Sukit.
“If Donald Trump wins, we’ve got to monitor any insurance policies to promote cryptocurrencies,” he mentioned.
Bitcoin and Ethereum are thought of different belongings for funding as a result of traders purchase them via spot alternate-traded funds, mentioned Mr Sukit.