Over the past day, we have seen a sharp rise in the price of bitcoin. On the morning of this Wednesday, the cryptocurrency has already shown a steady growth, and after reaching the level of $ 52,800 within 3 minutes it has risen in price to $ 55,500.
This is the highest mark that BTC has managed to reach since May, when its rate declined from a peak of about $ 65,000. The price of $ 55,500 was last fixed on May 12 – on this day, Elon Musk announced that he would stop accepting Tesla Bitcoin.
At the beginning of September, Bitcoin was already making an attempt to return to previous highs, but then the growth stopped at $ 53,000. At the time of publication, BTC is trading at about $ 54,500.
At the current price, Bitcoin is once again a trillion-dollar asset. Over the past day, the growth was 10.5%, and over the week – 35%. At the same time, the capitalization of the entire cryptocurrency market rose by only 4% in 24 hours, indicating a significant lag in altcoins.
Almost all digital assets from the first hundred today perform worse than Bitcoin; many remain at a loss on a daily basis. Ether, for example, is up 3% and is trading above $ 3,500.
Earlier, the head of the US Securities and Exchange Commission, Gary Gensler, said that the regulator had no plans to ban cryptocurrencies. He also called it a Congressional prerogative.
“I think we will continue to observe the power of Bitcoin. Altcoins will normally show themselves in pairs with USDT, but a correction to BTC is possible for 6-8 weeks before a new rise begins. December / January is usually the best time to buy altcoins , ”says analyst Michael van de Popp.
BTC Rises Amid Upcoming US Bitcoin ETF Launch
Until the end of this year, the US authorities may agree to approve a product focused on bitcoin. If crypto ETFs appear in the country, institutional investors will get another channel to penetrate the digital asset market.
The rise in the value of BTC will be one of the drivers stimulating the Securities and Exchange Commission (SEC) to approve ETFs. According to Bloomberg strategist Mike McGlone, in October the SEC may decide to approve the first applications for the launch of a Bitcoin ETF.
Another Bloomberg analyst, Erik Balchunas, believes that the likelihood of launching such a product in the US in the fourth quarter is 75%.
Note that the head of the SEC Gary Gensler is in favor of the approval of futures for bitcoin ETF. In his opinion, investing in future asset prices is a safer tool for institutions to enter the crypto sphere.
Balchunas admits that the SEC may soften its position in October, however, a radical change in the regulator’s policy is not yet to be expected.
What will happen next?
The breakthrough by bitcoin of an important psychological mark of $ 55 thousand may mean the beginning of a new round of growth – up to $ 58-60 thousand in the short term. The sharp rise in the first cryptocurrency is due to the transition of investors from traditional markets to cryptocurrency in search of defensive assets.
“Investors are looking for ways to invest and make a profit. This is what pushes the cost of cryptocurrencies up , ”said Artem Deev, head of the analytical department at AMarkets.
The dynamics of bitcoin shows that the coin can update its all-time high in the current year, says lead analyst at 8848 Invest Viktor Pershikov. According to him, the more the first cryptocurrency rises in price, the more new retail buyers will appear, thanks to which large market participants will be able to gradually exit positions without strong drawdowns of the asset.
“Institutional investors will partially fix their profits after bitcoin renews its all-time high, which will cause a correction in the region of $ 66-70 thousand ,” the analyst said.
Due to the fact that large investors begin to fix positions, the value of bitcoin may stop growing after the renewal of the historical maximum, Pershikov said.