Bitcoin rose temporarily this week against a backdrop of a pause in the rise in crude oil prices and gains in US equities, but was pushed back toward $81,000 as tensions in the Middle East flared again. Next week, the FOMC and earnings reports from major technology companies will be in focus, while caution over oil price movements remains warranted.
Bitcoin rebounded temporarily to the $84,000 range this week as the rise in crude oil prices paused, substantial funds flowed into spot ETFs, and US equities gained. However, it was pushed back into the $81,000 range by worsening conditions in the Middle East, resulting in trading with limited upside.
Looking ahead to next week, the market is expected to search for direction ahead of the FOMC (Federal Open Market Committee) meeting and earnings announcements from major technology companies. Caution over a rise in crude oil prices resulting from the stalemate between the US and Iran also remains. The recent price range is seen as $85,000 on the upside and $78,000 on the downside.
In terms of market movements, Bitcoin rebounded on the pause in the rise in crude oil prices and gains in US equities between 16 and 22 October, before falling again as conditions in the Middle East deteriorated. Early in the week, concerns over additional rate hikes following the US CPI and PPI results, as well as the impact of new index inclusion criteria, were cited. Inflows into spot ETFs supported firm supply-demand conditions.
Next week will be the peak of the earnings season, with results from Meta Platforms, Microsoft, Alphabet, Amazon.com and other companies drawing attention, along with trends in spending on AI investment. Bitcoin could also be affected depending on developments in the equity market.