Bitcoin surges to five month high based on seasonal factors I Finance
 
 
 
 
 
 

Bitcoin surges to five month high based on seasonal factors

/ 08:42 AM October 07, 2021

Bitcoin surged on Wednesday to its highest level in five months, as market sentiment continued to improve due in part to news a hedge fund controlled by billionaire investor George Soros trades bitcoin.

Investors also expect a seasonal rally in cryptocurrencies this quarter.

ADVERTISEMENT

The world’s largest cryptocurrency in terms of market value rose to $55,499.96, its highest since mid-May. It passed the $50,000 mark for the first time in four weeks on Tuesday amid, among other things, mounting institutional interest.

Bitcoin was last up 6.3% at $54,750.

FEATURED STORIES

According to reports on Wednesday, Soros Fund management confirmed at a Bloomberg summit that the fund is trading bitcoin. “We own some coins – not a lot,” Dawn Fitzpatrick, the fund’s chief executive, was quoted as saying.

Bitcoin surges to five month high based on seasonal factors

A representation of the virtual cryptocurrency Bitcoin is seen in this picture illustration taken June 14, 2021. REUTERS/Edgar Su/Illustration

There are seasonal factors as well.

“Bitcoin performs historically well in October, which almost makes the rising … price now a self-fulfilling prophecy. I’ve been saying repeatedly since the summer that I expect a new all-time high in October,” said Ruud Feltkamp, CEO of cloud-based automated crypto trading bot Cryptohopper.

“So what is the reason for this new pump? I think it’s partly due to the market cycle we’re in, where the emotional part plays a significant role.”

Bank of America Corp published on Monday its first research coverage focused on cryptocurrencies and other digital assets.

U.S. Bancorp announced it launched a cryptocurrency custody service for institutional investment managers who have private funds in the United States and Cayman Islands.

Smaller coins, which typically moves in line with bitcoin, were also up. Ether rose 2.2% to $3,594 and XRP was slightly up 0.2% at $1.0865.

Ben McMillan, chief investment officer at IDX Digital Assets, a factor-based crypto index strategy, noted that based on an analysis of on-chain data, he is seeing a steady rise in the number of new bitcoin addresses, after a huge drop-off in the first half of the year, as well as an increasing number of bitcoin moving off exchange.

Both factors – new addresses and bitcoin moving away from exchanges – are “structurally bullish indications.”

That said, McMillan said while the structural bull case for bitcoin is strong, “there remain non-trivial downside risks in the near term.”

(Reporting by Gertrude Chavez-Dreyfuss; Additional reporting by Sruthi Shankar and Susan Mathew in Bengaluru; Editing by Anil D’Silva and Marguerita Choy)

Subscribe to our newsletters! Get updates right into your inbox

By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.
Don't miss out on the latest news and information.
TAGS: Bitcoin, cryptocurrency, hedge funds
For feedback, complaints, or inquiries, contact us.

Subscribe to our newsletters!
Get Updates right into your inbox

By providing an email address. I agree to the Terms of Use and
acknowledge that I have read the Privacy Policy.




We use cookies to ensure you get the best experience on our website. By continuing, you are agreeing to our use of cookies. To find out more, please click this link.