Institutional adoption and a range of macroeconomic factors are expected to fuel a bitcoin rally in the fourth quarter, according to The Block, citing several analysts.
“Amid macro shifts and institutional adoption, digital assets are poised for continued growth in the fourth quarter as sovereign balances face pressure. Investors will seek long-term hedging opportunities like bitcoin,” noted Gabriel Selby, lead analyst at CF Benchmarks.
Ryan Lee from Bitget Research is equally optimistic about the leading cryptocurrency.
“Bitcoin’s momentum in October is expected to surpass September’s figures, with a target range of $58,000 to $72,000,” he noted.
In his view, institutional players will be a significant driver of the upcoming growth.
“MicroStrategy continued to sell bonds in September to buy more bitcoin, and exchange-traded funds (ETFs) saw net inflows following interest rate cuts. This indicates that institutions are optimistic about the market’s prospects. With steady institutional purchases, bitcoin is likely to break previous highs,” Lee added.
Macro Shifts
Selby noted that the U.S. regulatory framework could undergo significant changes following the presidential election on November 5, creating an environment for crypto innovation.
“We see conditions conducive to strengthening investor confidence and stimulating capital accumulation,” he emphasized.
The analyst also identified several trends that could accelerate cryptocurrency adoption, including Ethereum.
“L2 scaling solutions are growing to meet the increasing demand for Ethereum block space. Meanwhile, traditional financial institutions are exploring the tokenization of real-world assets on the network of the second-largest cryptocurrency by market capitalization,” Selby added.
He also believes that the emergence of generative artificial intelligence and the corresponding demand for GPU computing power will benefit decentralized physical infrastructure networks (DePIN).
Earlier this year, investment giant BlackRock launched a tokenized money fund based on Ethereum. Selby noted that this event marks the beginning of unlocking the potential of such assets in the context of their integration with DeFi. In particular, it opens up opportunities for using stocks, bonds, and real estate as collateral or for trading on decentralized exchanges.
Back in April, renowned analyst Peter Brandt predicted a fivefold increase in bitcoin relative to gold.