Bitcoin slump may rebound up to 21% in 7 days if history repeats: Economist
Bitcoin’s price may recover up to 21% over the coming seven days if October’s historical trends hold, according to an economist.
“Drops of more than 5% in October are exceedingly rare. This has happened only 4 times in the past 10 years,” economist Timothy Peterson said in an X post on Friday.’
He said those instances occurred in October 2017, 2018, 2019, and 2021. In the week following each drop, Bitcoin (BTC) rebounded by 16% in 2017, 4% in 2018, and 21% in 2019. The only exception was 2021, when the crypto asset fell a further 3%.
October is often dubbed “Uptober” for its historically strong returns.
Since 2013, October has been Bitcoin’s second-best performing month on average, delivering an average return of 20.10%, trailing only November, which has had an average gain of 46.02%, according to data from CoinGlass.
If history repeats, Bitcoin may skyrocket to $124,000
Peterson’s comments came after Bitcoin plunged to $102,000 on Friday following US President Donald Trump’s announcement of a 100% tariff on China.
At the time of publication, Bitcoin has already slightly recovered to $112,468, after only reaching a new all-time high of $125,100 on Monday, according to CoinMarketCap.
If history repeats and Bitcoin mirrors its strongest October rebound — the 21% surge in 2019 — a similar move from Friday’s low of $102,000 would place the cryptocurrency just below its latest all-time high, around $124,000, within a week.
Bitcoiners emphasize that it is still early in October
Several other Bitcoin advocates remain confident that the uptrend will continue.
In an X post on Friday, Jan3 founder Samson Mow said, “There are still 21 days left in Uptober.” MN Trading Capital founder Michael van de Poppe said, “This is the bottom of the current cycle.”
“The biggest liquidation crash in history. COVID-19 was the bottom of the previous cycle,” he said.
Some analysts took a longer-term view. The Bitcoin Libertarian said, “In a few years, Bitcoin will crash from $1M to $0.8M in a few hours, and we’ll all be talking about a new record high amount of liquidations.”
“Let history repeat,” he said.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
U.S. chip stocks drop for eight consecutive sessions! $2 trillion wiped out in market value, marking the longest losing streak since 2008
This week, the investment prospects of AI were questioned by the market. The Philadelphia Semiconductor Index fell by 11.4%, and the Nasdaq dropped more than 4% in a single week. CoreWeave's stock price fell over 25% during the week, and its bonds dropped to distressed levels, casting doubt on the high-yield debt financing model. Strategists warned that being overly bearish could lead to missing opportunities, while "Wood Sister" bucked the trend and increased her holdings of CoreWeave.
In August, overseas funds returned to the U.S. Treasury market; UK holdings surpassed $1 trillion for the first time; Japan and China continued to reduce holdings, with China’s U.S. Treasury holdings hitting the lowest level since 2008
According to a report by the U.S. Treasury Department, overseas investors made net purchases of $108.9 billion in U.S. Treasury bonds in August, reversing a two-month decline in holdings. Among the top ten countries and regions holding U.S. debt, only China and Japan reduced their holdings in August. Japan, the largest holder, saw its holdings drop for the fourth consecutive month, reaching a 22-month low in the same month it intervened in the foreign exchange market. China’s holdings declined for the third straight month, hitting new lows for two consecutive months not seen since 2008. The UK, the second-largest holder, posted historic highs for two consecutive months. Canada recorded the largest increase in August, up $38.3 billion, ranking fifth overall. Belgium had the second-largest increase, up $19.8 billion.
Strategy surpasses JPMorgan in trading volume as MSTR neared 49M shares in August
Crypto prices
More
