Bitcoin rally continued on Tuesday as investors bet that the world’s most popular cryptocurrency will retest the record highs reached earlier this year. It hit a record high of $65,000 in April, 2021. Bitcoin price touched $57,000-mark on October 11, for the first time in five months since May. The cryptocurrency jumped 2.32 per cent in the last 24 hours to climb to $56,796 at 0818 hours, according to coinmarketcap.com. There were several factors involved behind this sudden jump in Bitcoin price. One of the main catalysts could be the approval of US Securities and Exchange Commission to a cryptocurrency exchange-traded fund (ETF). The growing popularity and adoption of cryptocurrency across the world could also push Bitcoin rally since last week.
“Bitcoin has witnessed a significant rally. Volumes have shown good traction, and momentum is strong too. In so doing, Bitcoin almost entirely removed any trace of the impact China’s ban on mining had on prices in May and became a trillion-dollar asset class again,” said ZebPay Trade Desk.
Over the past one week, the price of world’s largest cryptocurrency by market capitalisation rose over 15 per cent. Bitcoin regained $1 trillion market capitalisation feat again. Bitcoin dominance is up to 46 per cent now, and “this rally has sparked enthusiasm and confidence among market participants, with longer-term BTC price projections being largely bullish in nature,” the analysts expect.
“The asset gave a breakout above the descending trendline and made ‘Higher Top Higher Bottom Formation’ and soared above the long-held resistance of $53,000 (previous high from where the asset witnessed sharp correction). Currently, Bitcoin is consolidating at higher levels and trading in a range from $56,000 to $54,000. If the bulls manage to hold the support of $53,000, then we may expect the asset to further rally up to the $60,000 mark and if the bears push the price below $53,000 then we can expect minor correction up to $46,500,” ZebPay Trade Desk further added.
Meanwhile, the altcoin market is comparatively down as Ether Cardano, Polkadot and Dogecoin were trading lower on October 11. Ether price dropped 0.47 per cent in the last 24 hours to $3,460.19, according to coinmarketcap.com. Cardano also fell 5.48 per cent to $2.09. Polkadot dipped 6.17 per cent to $32.75 while Dogecoin was down by 4.35 per cent by $0.2232.
“The daily chart for Ethereum indicates that it may well be moving above the $3.6K level which was the previous resistance level as indicated in the triangle pattern formed. Ether is nearing the $4,000-mark set this month and will most definitely surpass its ATH of $4356 even after considering the fact that 25 per cent of the total Ethereum supply on exchanges has been withdrawn over the past year as per blockchain analytics,” said WazirX Trade Desk.
Bitcoin is appearing to be a better hedge against inflation than gold, JP Morgan, the leading American investment banking company recently said in a note. “Institutional investors appear to be returning to Bitcoin, perhaps seeing it as a better inflation hedge than gold,” JP Morgan’s note reportedly mentioned.
This third crypto rally was fuelled by “the reemergence of inflation concerns among investors” and they are trying to use Bitcoin as a hedge against it, JP Morgan added.