Bitcoin’s price is thundering towards $150,000 by the end of the year despite the temporary selloff after the October 29 Federal Reserve meeting.
That’s according to Annabelle Huang, former managing partner at wealth manager Amber Group and Altius founder.
She told DL News that the “sell the news” price action after the Fed slashed interest rates by 0.25% does not affect long-term bullishness.
To be sure, Huang cautioned that markets face “some headwinds” before the next Fed meeting in December as volatility spooks traders, stressing that any dip below $100,000 is a buy.
The call comes as Bitcoin is down 12% from its all-time high set on October 6, trading at about $111,400. Bitcoin exchange-traded funds recorded $470 million in outflows on October 29, but have still drawn in over $4 billion in net positive inflows in October, according to DefiLlama data.
Huang is not the only one that sees long-term upside.
Greg Magadini, director of derivatives at Amberdata, told DL News that “as long as liquidity remains easy, we expect crypto to rally into the end-of-year.”
“Opposing narratives will help lower volatility as flows go back and forth, helping the market grind higher in a controlled fashion,” Magadini added, cautioning that “there are a bit of headwinds given the current 4-year cycle peak expected around November.”
Uncertain macro backdrop
All eyes are on the next Federal Open Market Committee meeting in December.
“Overall, FOMC came in as expected along with plans to end [quantitative tightening] in December,” Magadini said. “We’re still in the early stages of a cutting cycle and easing liquidity will help push prices higher and bring volatility back down for Bitcoin.”
The CME FedWatch tool puts the chances of another cut in December at 70%.
To be sure, Ed Yardeni, president of Yardeni Research, cautioned that there may not be any further cuts this year, stressing that Fed Chair Jerome Powell has signaled uncertainty in December.
“Some FOMC participants are probably concerned that easier monetary policy is increasing financial instability,” Yardeni said.
“They probably don’t want to feed the animal spirits in the stock market. We side with them.”
Crypto market movers
- Bitcoin is down 2.7% over the past 24 hours to trade at $110,000.
- Ethereum is down 2.5% over the past 24 hours, trading at $3,894.
What we’re reading
- Solana dark exchange HumidiFi eyes November for WET token ICO — DL News
- ‘Code Is Law’ documentary nails the drama of DeFi hacks — despite what it leaves out — DL News
- USD1 Airdrop Rewards Early Adopters With 8.4 Million Tokens — Unchained
- Ethereum Is Becoming Wall Street’s Favorite & Lido’s the Gateway w/ Izzy & Kean — Milk Road
- Ethereum Foundation rolls out new institution-focused site amid Wall Street’s crypto push — DL News
Lance Datskoluo is DL News’ Europe-based markets correspondent. Got a tip? Email atlance@dlnews.com.
