Key Points
- Bitcoin’s rise towards $65,000 could trigger gains historically seen in October, as per QCP Capital.
- The crypto market’s recent uptick has eliminated nearly $80 million in Bitcoin and Ethereum short positions.
QCP Capital, a cryptocurrency trading firm, has suggested that Bitcoin’s surge towards $65,000 could spark gains that are typically seen in October.
Bitcoin’s Potential Rally
The firm noted on its Telegram channel that Bitcoin’s 4% price increase on October 14 might indicate a rally for the leading cryptocurrency in the second half of the month. This rise in the overall crypto market liquidated approximately $80 million in leveraged short positions for Bitcoin and Ethereum, reducing the bearish pressure on these two market leaders and the wider digital asset sector.
According to QCP Capital, Bitcoin’s price increase occurred three weeks before the U.S. presidential elections in November. Trading data revealed that Bitcoin exhibited similar price patterns on two previous occasions. For instance, Bitcoin doubled its value by January 2017, after its price began to rise in October, just before the 2016 elections. Similarly, in 2020, less than a month before the presidential election, Bitcoin’s price jumped from around $11,000 to over $42,000 by Q1 2021, nearly tripling in value.
Bitcoin’s Future Outlook
If history repeats itself and Bitcoin’s bull market revives after the U.S. elections, Bitcoin’s value could reach or surpass $120,000 by early 2025. A base case where Bitcoin doubles in price would also push its market cap well above $2 trillion, a significant achievement for the leading cryptocurrency.
QCP Capital analysts also mentioned that the updated repayment plan of Mt. Gox, a defunct Bitcoin exchange, might strengthen Bitcoin’s bullish outlook. Last week, the exchange delayed its creditor reimbursement deadline to October 2025. It has been noted that Bitcoin buying activity has also reduced selling pressure across several digital asset exchanges.
October has been somewhat disappointing so far, with Bitcoin up just +1.2% vs an average of +21%. Will history repeat itself after months of range-bound trading? The recent rally has certainly provided the market with a ray of hope as optimism for a profitable October was fading.