Bitcoin Analysis for October 2022: What Are the Different Macro Economic Factors?

Risk Disclaimer >>
Ad disclosure ChesWorkShop takes pride in assisting you in forging wise financial paths. To realize this, we associate with seasoned professionals to deliver the latest updates and details. Interactions involving specific links, sponsored narrations, products and/or services, broker lead transfers, or advertisements can potentially earn us a fee. Our objective is to maintain a space where users can interact without encountering disadvantages. Bear in mind that the details shared on our webpage do not hold the ground as legal, tax, investment, financial counsel, or any formal advice but are shared with an informational intention only. If in doubt, we propose reaching out to an independent financial advisor.

After hitting a three-month low, Bitcoin’s (BTC) price is back above $21,000, rallying from below the $19,000 drop on Tuesday last week.

Some crypto experts say that September is still a tough month for Bitcoin. Economic challenges not only in the US but also in other countries throttle the stock market, which the crypto market and BTC have even more tracked in previous months.

Each move down quickly meets with large BTC orders, mainly from big wallet addresses. In return, BTV continues to see rallies in the broader downward trend. In other words, many institutions buy BTC, while everyday investors hold off.

This is why many investors will be more concerned about macro economic factors in October 2022.

Investors Are Expected to Sell Every Bitcoin Price Increase 

Most investors argue that macro economic outlook will not improve anytime soon. This may result in selling every Bitcoin price increase. Additionally, savvy investors and institutions tend to think that BTC will continue to accumulate and form a bottom.

Different macro economic factors continuously drive additional short-term volatility in stock and crypto markets, such as rising interest rates, geographical crises, and surging inflation. The crypto market constantly moves along with the previous months’ stock market.

The result? The market has entangled with the global economic factors even more.

This year’s highest point of BTC remains in the first week of January so far. On January 2, the crypto nearly hit the $48,000 mark. Since its all-time high of over $68,000 on November 10, 2021, this crypto asset has lost around 7% of its value.

At Some Point, Experts Do Not Lose Hope that BTC’s Price Will Exceed $100,000

Although Bitcoin has had ups and downs short of its all-time highs, many experts still hope its prices will exceed $100,000.

Bitcoin’s volatility emphasizes the durable truth – it remains a highly speculative and volatile investment. The last time it set a record high was mid-April, and it shortly lost over half the value. Then, it rushed to $30,000 by mid-July. It also dropped back below the $35,000 mark this month.

So, many investors wonder what they should do in BTC’s volatility. Experts responded that they should do nothing.

Since BTC has a history of volatility, any increase in the price will not guarantee long-term reversals. Remember that its price tends to fall back down when it continues to climb. It is also worth mentioning that experts state that BTC is expected to have more volatility in the future, and long-term investors should continue dealing with that truth.

October Involves Continued Volatility 

People interested in investing in Bitcoin should expect continued volatility. So, experts recommend keeping their investments to less than 5% of their overall portfolio.

According to some personal finance experts, many things are super volatile. For example, some days, BTC might go down 80%. However, if investors believe in BTC’s long-term potential, they should not check on it.

Besides not letting the BTC’s price drop influence their decision to buy it, investors should not also allow a sudden price increase to change their long-term investment strategies.

Uphold Blockchain and Crypto Research Head Martin Hiesboeck said, “The market remains vulnerable and on edge, not necessarily by threats from more crypto projects going bust but from the difficult economic situation we are facing right now. In other words, the price of bitcoin depends more on the supply of gas to Germany as it does in any crypto-related news or metric.”

More Volatility to Come 

With the continued inflation, war, and monetary policy shifts in the US, more volatility is expected in the coming weeks.

Over the past six months, BTC has only been over the $45,000 mark and never above the $50,000 mark since December 2021. The crypto’s current price is too far from November’s all-time high, which is above $68,000.

However, BTC remains more than twice as valuable as it was for the past couple of years despite the recent decline in price. The recent ups and downs are common for Bitcoin.

Sarah Catherine Gutierrez, an Arkansas-based financial planner, said, “I don’t think people understand across the board how to value (Bitcoin). When you’re buying it, you need to know your expectation of what value you’re going to get from what you’re buying.”

Risk Disclaimer

ChesWorkShop commits to presenting fair and reliable information on subjects including cryptocurrency, finance, trading, and stocks. However, we do not have the capacity to offer financial guidance, advocating instead for users to conduct their own diligent research.

Leave a Reply

Your email address will not be published. Required fields are marked *