Analysts Predict Bitcoin Will Track Gold as October Slowdown Masks Solid Momentum

Bitcoin’s October Slowdown Masks Strength as Analysts Eye Gold-Correlated Rally

Despite a quiet October, Bitcoin (BTC) holding near $110,000 shows signs of resilience, with analysts anticipating a potential breakout in the near term.

While the cryptocurrency has underperformed its typical October pace, its stability around $111,000 is being interpreted as strength rather than weakness. Over the past 24 hours, Bitcoin slipped 1.2% to $111,500, while broader crypto markets experienced sharper declines: Ether and XRP fell 3%, and Solana and Dogecoin dropped about 2%. In contrast, gold and silver surged to record highs, and U.S. equities remained in positive territory.

Analysts Call for Patience

At Wednesday’s Digital Asset Summit in London, Quinn Thompson, CIO of Lekker Capital, said Bitcoin is poised to catch up with gold. “We expect the move to begin very soon,” he noted, comparing the potential rally to strong Bitcoin moves in November 2024 and October 2023.

Matt Mena, crypto research analyst at 21Shares, emphasized that Bitcoin’s durability amid global uncertainty highlights structural demand, supported by ETF inflows and a more dovish Fed outlook. With leverage largely flushed from the market and monetary easing expected, Mena projects that Bitcoin could climb to $150,000 before year-end.

Fed Policy Remains Crucial

Bitcoin’s trajectory also hinges on the Federal Reserve’s policy path. The Fed’s Beige Book reported signs of a softening labor market, reinforcing expectations for rate cuts at the remaining policy meetings this year.

Fed Chair Jerome Powell acknowledged labor market softness while avoiding specifics on rates, supporting the market’s view that further easing is likely, providing additional support for Bitcoin.