Today, Bitcoin, the leading cryptocurrency, fell over 1% and erased Wednesday’s spike, penetrating the 200-hour simple moving average. At the same time, Wall Street’s main indexes posted subdued gains; however, JP Morgan says it’s just a matter of time before they crash.
On Wednesday, minutes from the Fed’s September meeting, as seen by Cryptopolitan, revealed that around half of policymakers expect two more rate cuts by the end of the year. This marked a more dovish stance from the central bank.
In response, markets reacted with gains across equities, crypto, and commodities. Spot bitcoin ETFs saw $441 million in net inflows, marking their eighth consecutive day of gains. The price of the coin went up to $124k, a little below its all-time high of $126k achieved on Monday. However, on the wake of Thursday, the king coin has been volatile, with its price fluctuating between $121k and $123k.
Market watchers say that the ongoing bull market will continue
The current market data shows that since the start of October, there has been a massive inflow into Bitcoin ETFs. This peaked at over $1.2 billion on October 6, a liquidity boom that translated into an all-time high of $126,198 on the same day.
Several market watchers expect BTC to remain bullish because of the prevailing factors. With the US government on shutdown, investors of all classes have managed to find solace in Bitcoin and other assets as a cushion for macro-economic uncertainties. Overall, exchanges are bleeding Bitcoin, a liquidity crunch that shows potential for more price breakouts ahead.
Ryan Lee, Chief Analyst at Bitget, said that this bull cycle is distinct from previous ones. “In complement to the sustained accumulation by Spot Bitcoin ETF outfits, firms are also directly adding Bitcoin into their corporate treasuries, locking up the coin as a major store of value and hedge against inflation,” he added.
In retrospect, Arthur Hayes contended in an essay titled “Long Live the King!” that the primary catalyst behind the 2014, 2018, and 2022 BTC bear markets was monetary tightening in major economies, rather than the four-year halving cycle. The essay shows that Bitcoin’s price experienced a 70% to 80% decline from its bull market apex on each of these occasions.
The US stock market is on the verge of collapse
Jamie Dimon, chair and CEO of the huge Wall Street bank JPMorgan Chase has said that the chances of the US stock market collapsing are much higher than most investors think. Jamie Dimon said that he is far more worried than others about a big drop in the stock market. He thinks it will happen in the next six months to two years.
“I would give it a higher probability than I think is probably priced in the market and by others,” he stated. “So if the market’s pricing in 10%, I would say it is more like 30%.” Dimon also said that there are a lot of things out there that are making things unclear. He named risks like the state of geopolitics, government spending, and the remilitarisation of the world.
Additionally, Kristalina Georgieva, head of the International Monetary Fund, said on Wednesday that the world economy had been surprisingly strong in the face of Donald Trump’s trade war. However, she gave a stark warning about the rising risks, saying, “Buckle up: uncertainty is the new normal.”
Meanwhile, the Dow Jones Industrial Average is up 20.5 points, or 0.04%, to 46,622.31. The S&P 500 is up 6.8 points, or 0.10%, to 6,760.5, while the Nasdaq Composite is up 2.0 points, or 0.01%, to 23,045.329.
