What Factors Point to Bullish Q4?
According to the latest report from New York Digital Investment Group (NYDIG), Bitcoin continues to stand out as the best performing asset in 2024. Moreover, Q4 is expected to remain positive for Bitcoin price despite various challenges.
The report also said that Bitcoin has a lot of motivation to continue to increase in Q4.
Bitcoin will hold a 49.2% increase in 2024
Despite a huge 30% drop in Q3, Bitcoin has managed to stay above $60,000 so far. In the year Compared to other assets in 2024, its performance far outpaced precious metals and equities, up 49.2% year-on-year. In contrast, silver rose 30.6 percent and gold rose 26.5 percent.
Read more: Bitcoin (BTC) Price Prediction 2024/2025/2030
However, in Q3 alone, Bitcoin's gains were modest, trailing traditional assets with only a 2.5% increase. The dip is due to government selling pressure during Q3, which has sparked concern among investors.
“The quarter was the (near) resolution of several losses in the game, including the long-running Mt Gox bankruptcy, which resulted in billions in BTC being returned to creditors. The US government and German authorities (BKA) were also notable sellers in the quarter, NYDIG reported. .
Reasons for optimism about Bitcoin's Q4 performance
Despite this, the report is optimistic about Bitcoin's outlook in Q4. Crash prediction is based on several key factors:
Political support: Both presidential candidates, Trump and Harris, have shown a more open stance on the crypto industry. Regardless of who wins, crypto investors can benefit. Correlation to stocks rises: Bitcoin's 90-day correlation to US stocks continues to rise in Q3, ending the quarter at 0.46. This points to Bitcoin's growing role in portfolio diversification. Rising Global M2 Money Supply: Continued global M2 money supply could favor new highs as Bitcoin prospers under looser monetary policies.
“Bitcoin is headed for $90,000 before the end of the year if it continues to follow the trajectory of the global M2 money supply,” said investor Joe Consorti.
Additionally, other signs reinforce Bitcoin's bullish case in Q4. Bitcoin ETFs continue to increase their BTC holdings, while major companies such as MicroStrategy and Marathon Digital show no sign of slowing their Bitcoin holdings.
Read more: How to trade Bitcoin ETF: A step-by-step approach
Historical data shows that Bitcoin often posts average gains of more than 81% in Q4.
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