Bitcoin Faces Perfect Storm Ahead of Fed Meeting

Bitcoin's recent surge of nearly 44% over three months may be short-lived as a perfect storm of rising oil prices, slowing exchange-traded fund inflows, and a Federal Reserve meeting could unravel the rally before October is over.

The upcoming Federal Reserve meeting on October 27-28 will play a crucial role in determining Bitcoin's price trajectory. As of now, the cryptocurrency is trading at approximately $83,070, but its path forward remains uncertain.

Rising oil prices above $100 a barrel and slowing inflows into US spot Bitcoin ETFs, currently holding $108.4 billion, are adding pressure on Bitcoin's price. Additionally, with no clear timeline for resolving issues in the Strait of Hormuz, the oil market could significantly affect Bitcoin's price in October.

To maintain its upward trend, Bitcoin first needs to surpass $87,397, which is 5.2% above its current price. Breaking through this level could pave the way for a rise toward the psychological milestone of $90,000.