Bitcoin Faces Perfect Storm in October as Interest Rates and Oil Prices Rise
Bitcoin's recent surge has many investors wondering if it can maintain its momentum in October. Over the past three months, Bitcoin (CRYPTO:BTC) has surged nearly 44% but a perfect storm of rising oil prices, slowing ETF inflows, and a Federal Reserve meeting that could change everything threatens to unravel the rally before October is over.
The upcoming Federal Reserve meeting on October 27-28 is key to any Bitcoin price prediction this month. Rising interest rates can negatively affect Bitcoin because it pays no interest or dividends, making government bonds more attractive to investors. The 10-year Treasury yield has climbed to 5.17%, and a quarter-point hike is expected.
Rising oil prices have returned to the forefront, with Brent crude prices above $100 a barrel. This could fuel inflation, giving the Fed more justification to raise rates. Additionally, inflows into US spot Bitcoin ETFs have begun to slow, which could further pressure Bitcoin's price.
For Bitcoin to maintain its upward trend, it needs to surpass $87,397, the high reached on September 21. Breaking through this level could pave the way for a rise toward the psychological milestone of $90,000. However, if the Fed hikes rates while Brent oil prices remain high, Bitcoin's price might drop back toward the lows seen in mid-September.