For its first session in October, cryptocurrencies are exploding. The Fed together with the American Stock Exchange Authority (SEC) pave the way for the bull run. The market rises by more than 8%. The objective of 30% growth on average in October seems very achievable.
Bitcoin crosses $ 4800 and heads straight for the psychological 50,000 mark. Equally bullish Ethereum is building a pattern towards $ 3,500. The Cardano is tentatively advancing 5.53% towards $ 2.25. Ripple reverses dollar resistance and the Doge looks set to take back $ 0.30.
For this session, we will remember the superformance of Axie Infinity, the gaming token has seen its progress by more than 40%. Solana also had a nice breakthrough at 15%. One factor seems to fuel the bullish idea of the market even more: Inflation.
Inflation is real
When you spin the printing press and the supply does not sufficiently match the liquidity injected into the economy, there is no other result: Generalized price increases or inflation. This is what happened with all the stimulus plans put in place by the world economies. If they relieve demand but they would not be without consequence on the movement of prices.
Jerome Powell has tried to calm things down by trying to make the current inflationary situation transient but still admits to being real next year. This is the reason why central banks would consider raising sovereign rates and practicing a rather restrictive monetary policy in 2022.
Charlie Bilello draws us to the case of Germany:
Inflation in Germany
Consumer prices in Germany rose 4.1% over the past year, the highest inflation rate since 1993.
Meanwhile, the ECB maintains that keeping interest rates at negative levels is still necessary to cause… inflation to rise. You can’t invent that sort of thing.
In fact, the German economy would not be the only industrialized country facing the problem of inflation. In September, inflation rose 5.2% in the United States on an annual basis. In France, prices climbed 2.1 over one year in September according to INSEE.
Institutionalists are already preparing for this phenomenon
It’s a fact that institutional investors are pouring out crypto products. What’s even more incredible, they had continued to accumulate the cryptos while they were available on the cheap. During the fall of September, the level of transactions of more than $ 10 million in bitcoin exceeded that of when BTC was at its highs around $ 55,000 – $ 60,000.
The Fidelity study is another much more striking example of institutional interest in crypto products. Entitled “THE STUDY ON THE DIGITAL ASSETS OF INSTITUTIONAL INVESTORS”, it indicates that 52% of institutional investors already own cryptocurrencies. 71.66% of them say they are ready or continue to invest in cryptos in the years to come.
Michaël Saylor, whose company owns 0.5% of the global bitcoin supply, has advice on Twitter:
In the face of rampant inflation, liquidity and credit become crumbling liabilities. Convert your balance sheet to #bitcoin to turn your debts into assets.
Real rate
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Quarterly performance of Bitcoin between 2014 to 2021
Inflation would benefit cryptos that are already considered by more than one to be a safe haven. The forecast is extremely bullish for the last quarter of the year. It is worth remembering that bitcoin had gained 168% during the 4th quarter of 2020. If it climbs to $ 100,000, it would exceed 100% growth over the quarter.
The same goes for Ethereum, its value also has the potential to exceed 100% at the end of the year. Cointelegraph reporter Jordan Finneseth identified three reasons that could be the basis for a 100% rise in the price of ether. They are: inflation, the supply squeeze and the bullish Cup and Handle chart pattern.
Michaël Van de Poppe shared his bullish cryptos for the end of the year on his Twitter account with this post:
I think we’ll see more coins going towards $ 100 + this quarter.
#Chainlink
#Cosmos
#Polkadot
