The price of bitcoin has risen over the past three Halloween. Will 2022 be an exception? A Coinmarketcap survey predicts the price of the cryptocurrency on October 31st.
Will the Halloween party make investors sweat? While bitcoin price predictions never end, the popular Coinmarketcap platform conducted a survey that predicts the price of bitcoin on October 31, Halloween.
“The Halloween Effect”
If we take Halloween as a benchmark in relation to the evolution of the price of the asset, its price has gone from $ 9266 in 2019, to $ 13,794 in 2020 to $ 61,300 in 2021. It will be the year 2022, which has seen an unprecedented upheaval with two cryptographic crashes, be an exception?
“There is one factor to consider when investing this time of year: the Halloween effect. A popular superstition among traders is that bitcoin and the stock market generally perform better from late October to late May,” he points out. an article by finbold.
Each month, Coinmarketcap conducts a survey of its community on the price of the cryptocurrency queen. More than 28,000 platform members have made predictions as of October 31st.
About $ 21,248?
The survey result indicates a bitcoin price of $ 21,248 on October 31, up from the current price. This Friday, bitcoin is trading around $ 20,500, the cryptocurrency queen has lost more than 70% of its value from its all-time high in November 2021, at $ 69,000.
Was the poll right? Should bitcoin benefit from a “Halloween effect” by being more efficient that day, the cryptocurrency is likely to rise in the following days. The Federal Reserve (Fed) will hold a new meeting on 1 and 2 November.
However, what we have observed in recent months is a correlation between the price of cryptocurrencies – mainly bitcoin and ether – in traditional financial markets. Hence, a traditional market reaction to the Fed’s announcements generally has an impact on the price of bitcoin, downward as well as upward.
Correlation to traditional markets
For example, a drop in the Nasdaq usually leads to a drop in the cryptocurrency market. Indeed, tech stocks and cryptocurrencies are among the assets most sensitive to central bank policies, and in particular the American central bank (the Fed).
Recall that in 2020 and 2021 there was strong liquidity in the markets injected by central banks to support economies in the midst of a pandemic. This has caused a rise in the cryptocurrency market and the Nasdaq and other risky assets. The year 2022 changes that with the Fed rate hike having a downward impact on the price of cryptocurrencies.