Three Key Factors That Will Drive Bitcoin Price Performance in Q4
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There are three crucial factors – primarily US-related – that will drive the performance of Bitcoin (BTC)’s price in the fourth quarter of this year, according to the latest CoinMarketCap’s Quarterly Report.
Firstly, the report discussed significant macroeconomic conditions.
Many are focused on the US Federal Reserve’s rate decisions, as has been the case recently as well.
However, the report noted the “crucial role” that broader economic indicators play, including productivity indicators, unemployment data, and inflation.
Indications of a recession could limit BTC’s upside potential, since investors would become more reluctant to take risks.
Therefore, said the report, “if there are strong signs that the US is headed for a recession, it will be difficult for Bitcoin to experience a sustained bull market.”
Another relevant factor is political influence.
Per the researchers, US policies toward crypto are key. Positive regulation or clear guidance could boost the price increase.
Negative sentiment or stricter regulation in this country could “dampen enthusiasm.”
The third crucial factor is the level of institutional investment. The amount of capital going into Bitcoin exchange-traded funds (ETFs) and the broader crypto space will demonstrate market confidence.
“Strong institutional inflows could significantly boost BTC prices, potentially driving a more pronounced rally in the fourth quarter,” the report remarked.
The third quarter of 2024 was marked with a bearish trend across the crypto market. This wasn’t unexpected, as it aligns
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