TLDR
- Bitcoin trades at $111,500 after 1.2% daily decline while gold hits new highs
- Lekker Capital CIO predicts Bitcoin will catch up to gold with rally similar to November 2024
- 21Shares sees $150,000 target before 2026 based on ETF flows and Fed dovish stance
- Federal Reserve data shows labor weakness supporting rate cut expectations
- Proposed 401(k) crypto bill could unlock access to $9.3 trillion in retirement funds
Bitcoin price slipped 1.2% to $111,500 over 24 hours while precious metals reached fresh record highs. The divergence has caught attention, but multiple analysts view the stability as bullish.
Gold and silver surged to new peaks on Wednesday. Bitcoin struggled in comparison, with altcoins performing worse. Ether dropped 3%, XRP fell 3%, and Solana and Dogecoin each declined 2%.
Quinn Thompson, chief investment officer at Lekker Capital, spoke at the Digital Asset Summit in London. He told attendees Bitcoin will soon catch up to gold’s performance.
Thompson expects a move similar to the rallies seen in November 2024 and October 2023. Those periods brought strong gains across digital assets.
Analyst Price Targets
Matt Mena from 21Shares echoed the bullish outlook. He said Bitcoin’s resilience during uncertain times proves structural demand remains intact.
Mena pointed to ETF inflows and a dovish Federal Reserve as key factors. His year-end target sits at $150,000 for Bitcoin price.
The Federal Reserve released its Beige Book on Wednesday. The report revealed growing weakness in the U.S. labor market across the central bank’s 12 regional districts.
Markets expect rate cuts at the Fed’s two remaining meetings in 2025. Fed Chair Jerome Powell acknowledged labor market “softness” on Tuesday but avoided specific rate guidance.
The U.S. Department of Justice announced a $15 billion cryptocurrency seizure. The news came after a wallet linked to China’s LuBian mining pool moved $1.3 billion in Bitcoin.
The wallet transferred 11,886 BTC in its first major activity in three years. Blockchain trackers Lookonchain and Arkham confirmed the movement.
Retirement Account Legislation
Representative Troy Downing introduced a bill to permanently allow crypto in 401(k) accounts. The proposal follows the Labor Department reversing Biden-era restrictions.
Americans manage over $9.3 trillion in 401(k) retirement plans. Even small crypto allocations from these accounts could bring billions into the market.
The broader crypto market rebounded after Friday’s $1.2 billion selloff. NFT market capitalization dropped from $6.2 billion to $5 billion before recovering to $5.5 billion.
Collections like Bored Ape Yacht Club and CryptoPunks saw minor losses. Mutant Ape Yacht Club began climbing again as stability returned.
Despite the volatility, crypto funds attracted $3.17 billion in fresh inflows. The figure demonstrates continued investor confidence.
Bitcoin price charts show a triple-bottom pattern forming near $109,600. This technical setup has triggered multiple reversals since late September.
The cryptocurrency trades below the 100-period moving average at $116,054. A confirmed close above $114,600 would validate the bullish pattern.
The Relative Strength Index sits at 43, curving upward from oversold territory. This suggests improving momentum for Bitcoin price.
A sustained break above $120,000 could open targets at $125,000 and $130,000. Traders watch for long setups above $114,600 with stops under $109,500.
The proposed 401(k) legislation represents a potential catalyst for institutional adoption. Combined with Fed easing expectations and technical patterns, Bitcoin price may be positioning for its next major move heading into the fourth quarter.
