Bitcoin’s October Weakness Conceals Resilience, Analysts Forecast Convergence With Gold

Bitcoin’s October Pullback Hides Strength as Analysts Eye Gold-Correlated Rally

Despite a relatively quiet October, Bitcoin (BTC) near $110,000 is showing resilience, with analysts forecasting a potential breakout in the weeks ahead.

While the cryptocurrency has lagged its typical October momentum, its stability around $111,000 is being interpreted as strength rather than weakness. Over the past 24 hours, Bitcoin dipped 1.2% to $111,500, while broader crypto markets saw sharper declines: Ether and XRP fell 3%, and Solana and Dogecoin dropped about 2%. Meanwhile, gold and silver surged to record highs, and U.S. stocks remained in positive territory.

Analysts Call for Patience

Speaking at Wednesday’s Digital Asset Summit in London, Quinn Thompson, CIO of Lekker Capital, said Bitcoin’s time to catch up to gold is imminent. “We expect the move to start soon,” he told attendees, comparing the anticipated rally to strong Bitcoin runs in November 2024 and October 2023.

Matt Mena, crypto research analyst at 21Shares, echoed the outlook, noting that Bitcoin’s resilience amid global uncertainty reflects structural demand anchored by ETF inflows and a dovish Fed outlook. With leverage largely cleared from the market and monetary easing on the horizon, Mena projects that Bitcoin could climb to $150,000 before year-end.

Fed Policy Remains Key

The Federal Reserve’s next moves will be pivotal. In its Beige Book, the Fed highlighted signs of softening labor market conditions, supporting expectations of rate cuts at the remaining policy meetings this year.

Fed Chair Jerome Powell acknowledged labor market softness while avoiding specifics on rates, reinforcing the market’s anticipation that further easing is likely, which could provide continued support for Bitcoin.

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