The world’s largest cryptocurrency could be waiting for a fresh fundamental spark to trigger significant price swings.

Risk aversion engulfed global markets yesterday (Tuesday, 1st October) as tensions flared up in the Middle East. Iran launched a barrage of ballistic missiles at Israel, sparking fears of a wider conflict in the region.

Bitcoin has struggled for direction since the Federal Reserve announced its 50-basis point rate cut last week. Still, the world’s largest cryptocurrency could experience big price swings with the right fundamental drivers.

“Cable” briefly breached 1.330 after the Bank of England kept its rate unchanged at 5%. Moving forward, GBPUSD’s performance will be majorly influenced by the BOE’s policy outlook relative to the Fed, and is forecasted to trade between 1.2721 - 1.3776 through end-2024.