Bitcoin Faces $90,000 Hurdle as Oil Prices Soar and Fed Rate Decision Looms
Bitcoin's October performance is in focus as investors weigh various factors that could influence its price. The cryptocurrency was trading at around $83,070 as October approached, with a key question for investors being whether it can climb to $90,000.
The Federal Reserve's interest-rate decision and oil prices above $100 a barrel are among the key factors that could impact Bitcoin's direction. Citi analyst Alex Saunders raised the bank's base-case price target for Bitcoin to $113,000 from $82,000 on Thursday, citing renewed investor interest and flows into exchange-traded funds (ETFs).
The revised forecast reflects changes in market activity, the broader economic outlook, and ETF demand. Citi expects more money to flow into Bitcoin ETFs over the next year, with Saunders pointing to improving investor sentiment and renewed ETF demand as factors supporting this expectation.
However, rising US Treasury yields and higher commodity prices could put downward pressure on Bitcoin's price. Higher interest rates can make riskier assets less attractive to investors, who may find government bonds more appealing due to their regular returns and lower price volatility.