Bitcoin Cools Off at $34K, But '5th Bull Market' Has Further to Run, Says Analyst

Dogecoin and PEPE gained 5%-6% on Thursday, fading the action in a mostly lower cryptocurrency market.

AccessTimeIconOct 26, 2023 at 8:42 p.m. UTC
Updated Oct 27, 2023 at 2:42 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now
  • BTC slipped 2% to $34,000 as crypto markets cooled off after rally, with the CMI down 1.3%.
  • Meme coins DOGE and PEPE outperformed, while LINK and AGLD dropped on FTX movements.
  • Bitcoin is in its fifth bull market driven by institutional adoption as a safe haven asset, and could reach $125,000 by 2024 year-end, Matrixport said.

The crypto market cooled off Thursday after its sizable rally earlier this week spurred by spot bitcoin ETF anticipation.

Bitcoin (BTC) slipped about 2% over the past 24 hours to just above $34,000 as investors took profits following its near-20% jump over the past week. Ether (ETH) traded flat near $1,790.

The CoinDesk Market Index (CMI), which tracks the performance of a broad basket of digital assets, was down 1.3% on Thursday.

Chainlink (LINK) and adventure gold (AGLD) slumped 5% and 9%, respectively, as FTX wallets moved millions of worth of tokens to Coinbase potentially to sell, while Sam Bankman-Fried was due to testify at his criminal trial. Other sizable decliners included (SOL), (AAVE), and (BCH).

Perhaps buoyed by renewed animal spirits in crypto, traders rotated some of the proceedings into memecoins, with (DOGE) jumping nearly double-digits and (PEPE) gaining 6%, now roughly doubling its market capitalization in a week. Dog-themed token shiba inu (SHIB) also posted a sizable move but gave back most gains by late afternoon.

Equity markets extended their losing streak, dragged down by disappointing earnings reports. The S&P 500 dropped 1.2%, while the tech-heavy Nasdaq Composite Index declined 1.7%, per MarketWatch data.

What's next for bitcoin (BTC) price?

Despite taking a breather, bitcoin is very much in its fifth bull market, and the leading narrative is its perceived safe haven properties, crypto investment services firm Matrixport said in a Thursday market update.

"The fifth bitcoin bull market appears to be primarily driven by the expectations of institutional adoption," the report said. "Bitcoin's characteristics, which were traditionally associated with assets like gold and other safe-haven investments such as Treasury bonds, have led institutions to consider Bitcoin for diversifying their asset allocation."

Matrixport analysts doubled down on their $125,000 price target for 2024 year-end.

(Matrixport)
(Matrixport)

Bloomberg analyst Jamie Coutts compared bitcoin’s recent price action to the July 2020 breakout from the $10,500 price level, which eventually led to new all-time highs.

"Price has cleared a massive supply overhang – the largest in its history," Coutts noted. "Whilst there will be pullbacks, as we saw in Q3 2020, price is confirming the bull market regime."

Edited by Stephen Alpher.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.

Krisztian  Sandor

Krisztian Sandor is a reporter on the U.S. markets team focusing on stablecoins and institutional investment. He holds BTC and ETH.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.