Bitcoin’s upcoming price recovery will be driven by a handful of unique factors.
Bitcoin (BTC) dropped 4.1% between Oct. 21 and Oct. 22 after facing resistance at $69,500. This correction wiped out the previous week’s gains, leading traders to question whether the $67,000 level can be reclaimed and what factors might support a price reversal.
The S&P 500’s decline since its all-time high on Oct. 18 likely pushed Bitcoin investors to become more cautious. However, the main drivers behind the stock market pullback are mostly favorable for alternative assets. Gold, for instance, hit an all-time high on Oct. 22.
Billionaire hedge fund manager Paul Tudor Jones told CNBC on Oct. 22 that the US government will continue following an inflationary path “regardless of who lands in the White House.” Under this scenario, Tudor Jones recommends gold and Bitcoin, emphasizing that most investors are “ridiculously” underexposed to commodities.