The CEO of 10x Research, Markus Thielen, has expressed optimistic sentiments for the month of October regarding Bitcoin’s price action. Despite geopolitical tensions, Thielen believes that Bitcoin’s recent momentum is unlikely to be disrupted. He views any potential volatility as an opportunity for traders to capitalize on market fluctuations rather than a major threat. Thielen points to concerns surrounding the U.S. economy, particularly focusing on the employment sector, as the primary narrative influencing price action in October.
Thielen’s positive outlook is supported by stronger-than-expected U.S. jobs data that has eased fears of a looming recession. The U.S. economy added 254,000 jobs in September, surpassing expectations, with the unemployment rate dropping to 4.1%. Additionally, the annual pace of wage growth increased to 4.0%. The robust jobs report has led macro traders to scale back bets on another 50bps rate cut from the Federal Reserve in November. This development supports the narrative that a soft landing for the U.S. economy is still achievable.
Despite a rocky start for Bitcoin in October, Thielen remains optimistic about the month ahead. Historical trends suggest that Bitcoin has historically shown weakness in the first week of the month before seeing upward momentum in the remaining weeks. Thielen highlighted that 8 out of the last 10 Octobers have posted gains, averaging around +20%. The upcoming U.S. Consumer Price Index (CPI) release on October 10 is expected to provide further insights into the state of the U.S. economy.
Thielen noted that institutional investors are influencing the market more than retail investors currently, as spot Bitcoin and Ethereum Exchange Traded Funds (ETFs) are seeing positive inflows. Institutional investors signal renewed market optimism for the month ahead. Political developments, such as Vice President Kamala Harris’s public endorsement of digital assets and Donald Trump’s support for cryptocurrency, have also bolstered sentiment in the cryptocurrency market. The upcoming U.S. election is expected to be a major catalyst for Q4, driving new Bitcoin all-time highs.
In conclusion, despite initial concerns about geopolitical tensions, Thielen’s positive outlook for Bitcoin’s price action in October remains steadfast. The stronger-than-expected U.S. jobs data has eased recession fears, and market indicators suggest a soft landing for the U.S. economy is still achievable. Institutional investors are driving market optimism, and political developments, including bipartisan support for cryptocurrency, are expected to fuel new Bitcoin all-time highs. With critical catalysts ahead, October may still prove to be a bullish month for Bitcoin and the overall cryptocurrency market.
