Bitcoin is just at the highest level, analysts see more profits

There are several key drivers for bullish reversals. Macroeconomic uncertainty, including the ongoing U.S. government shutdown, has led investors toward alternatives like Bitcoin, which has been historically seen as a hedge against traditional financial risks.

Geoffrey Kendrick, head of digital assets at the Standard Charter, believes Bitcoin’s role as a safe haven is amplified by the fiscal deadlock in Washington.

The rally is also supported by what is called “Uptober,” a term used by traders to describe the typical October growth pattern of Bitcoin.

Over the past decade, the average earnings this month have exceeded 21%, usually laying the foundation for performance in the super-large quarter. In 2015, Bitcoin earned nearly 58% on average in the fourth quarter, outperforming every three months.

Institutions also seem to play a role in this jump, increasing traffic to exchange-traded funds and digital custody services, which both retail and professional investors can give their appetites.

Where is Bitcoin?

Bitcoin has traded sideways in recent months, but major liquidity indicators indicate that such a breakthrough is coming. Global M2 growth, Stablecoin supply trends and Gold’s rally (Bitcoin is all tracked with a 40-day lag – all pointing upward.

JPMorgan analysts believe that if Bitcoin is undervalued relative to gold, if “depreciating transactions” (investing assets that hedge against the risk of fiat currency) continues, the theoretical upside potential is $165,000.

Market observers like Kendrick are increasing their goals in response to Bitcoin’s rally, with some forecasts requiring prices exceeding $135,000 in the near term and possibly reaching $200,000 by the end of the year if the current trend continues.

At the time of writing, Bitcoin is trading at $123,319.82.