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Bitcoin Jumps Above $ 55,000 - What's Happening?
Bitcoin rallied sharply in the American session on Wednesday, jumping $ 4,000 in an hour, topping $ 55,000.
Oct 7, 2021
1 min read
Anna BakkerNews analyzer

At such levels, the first cryptocurrency was traded almost five months ago - on May 12.

Institutional investors are buying up bitcoin futures on the CME, which drives up prices.

Since the beginning of the month, BTC has risen in price by a quarter of its value. Altcoins lag significantly behind the first cryptocurrency. Bitcoin capitalization has exceeded $ 1 trillion, and the total cryptocurrency market is close to $ 2.4 trillion.

“We will continue to monitor the strength of Bitcoin. Altcoins are usually paired with USDT, but a BTC correction is possible for 6-8 weeks before a new rally begins. December / January is usually the best time to buy altcoins, ”said analyst Michael van de Poppe.

According to the forecasts of the founder of FairLead Strategies, Katie Stockton, in the very near future a scenario of a breakthrough to $ 65,000 is possible.

Bitcoin's rise above $ 50,000 is accompanied by renewed demand from institutional investors, according to data from the Chicago Mercantile Exchange (CME). Institutions are buying bitcoin futures pending ETF approval on the CME, ttrcoin writes.

Monthly contracts with near expiration date are traded with an overpayment (contango) of 12.8% on an annualized basis relative to the spot price of the cryptocurrency. This is the highest figure since mid-April, and a week ago, the same contracts were traded at a discount of 0.36%, Arcane Research notes.

On Monday, ETF Store President Nate Gerachi suggested that the first regulated Bitcoin ETF in the US could be approved within two weeks.

The billionaire George Soros family foundation owns bitcoin, said Don Fitzpatrick, CEO of Soros Fund Management. Information about this appeared even earlier, but did not receive official confirmation. The fund also owns stakes in cryptocurrency companies NYDIG and Lukka.

Gary Gensler, head of the US Securities and Exchange Commission (SEC), said in a speech to Congress on Tuesday that his agency has no plans to ban cryptocurrencies. According to him, the decision to ban should come from legislators (Congress).

“Now the cryptocurrency market is entering the most active phase right up to the Christmas holidays and the New Year. Therefore, it is likely that investors still have time to make the most of the sector's opportunities, ”said Gravity Plus analysts.

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