Bitcoin soars past $50K for the first time since September 7
Bitcoin traded at $50,047.15, up more than 5 percent in the past 24 hours.
Tue, 05 Oct 2021, 12:10 pm UTC
Bitcoin’s price has been on the rise this month. The crypto, which traded just above $42,000 on September 30, posted massive gains in just five days and BTC soared past $50,000 on Tuesday, October 5.
At the time of writing, Bitcoin traded at $50,047.15, up more than 5 percent in the past 24 hours based on Coindesk data. This is the first time that the crypto breached the $50,000 since September 7.
However, experts are not sure of BTC could sustain its upward momentum. “It’s too early to say whether this will turn into a new support level in the short term, but it is clear that the overriding market view is bullish,” Quantum Economics analyst Jason Deane said.
Meanwhile, Cointelegraph contributor Michaël van de Poppe believes that Bitcoin’s price could slightly retreat. “Given the conclusion from historical price action, it seems more likely that Bitcoin will be breaking upwards towards anything around $50,000 or maybe even the recent high, and then comes down towards $49,000 before we continue to rally back up,” he said in his latest YouTube update.
Some experts believe that BTC’s upward trajectory could be attributed in part to the crypto’s increasing use as an inflationary hedge. “Inflation is here to stay, and every household is starting to see prices skyrocket for goods and services nationwide,” BKCoin Capital co-founder Carlos Betancourt said. “Many savvy investors look for asymmetric opportunities and a hedge against inflation, and there is always one common asset that comes to mind ... remember, bitcoin is the only asset that governments or central banks cannot manipulate.”
Money from institutional investors also helped in pushing Bitcoin’s price upwards. “Ask any OTC [over-the-counter] dealer who specializes in digital assets or any liquid digital asset fund manager, and they’ll all point to significant and constant monthly inflows,” Arca Funds chief investment officer Jeff Dorman said.
There have been recent speculations that the SEC might soon approve futures-based ETF resulting in the bullish market sentiment. “Canada officially approved a crypto ETF that includes both bitcoin and ether and U.S. SEC Chair Gary Gensler showed support for a futures bitcoin ETF recently, and that’s certainly been digested by investors as a bullish sign,” Betancourt added. “The SEC is reviewing over 20 applications for ETFs and futures ETF products linked to bitcoin and ether.”
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