Bitcoin soars to five-month high on seasonal factors, Soros news

Bitcoin surged to its highest level in five months on Wednesday as market sentiment continued to improve


Reuters October 07, 2021
DESIGN: KIRAN SHAHID

NEW YORK:

Bitcoin surged to its highest level in five months on Wednesday as market sentiment continued to improve, with news that a hedge fund managed by billionaire investor George Soros was trading Bitcoin. bottom.

Investors also expect a seasonal rise in cryptocurrencies this quarter.

In terms of market value, the world’s largest cryptocurrency has risen to $ 55,499.96, the highest since mid-May. It surpassed $ 50,000 for the first time in four weeks on Tuesday, especially as institutional interest increased.

Bitcoin finally rose 6.3% to $ 54,750.

According to a report on Wednesday, Soros fund management confirmed at the Bloomberg Summit that the fund was trading Bitcoin. The fund’s CEO, Dawn Fitzpatrick, reportedly said, “We own some coins, but not many.”

There are also seasonal factors.

“Bitcoin has historically been strong in October and rising prices are now a self-fulfilling prophecy,” said Ruud Feltkamp, ​​CEO of the cloud-based crypto trading bot Cryptohopper. increase.

“So what’s the reason for this new pump? I think it’s also because of the market cycle we’re in, where the emotional part plays an important role.”

Bank of America Corp released its first investigative journalism on Monday focusing on cryptocurrencies and other digital assets.

US Bancorp announced that it has launched a cryptocurrency custody service for institutional investors with private funds in the United States and the Cayman Islands.

Small coins that normally move along with Bitcoin have also risen. Ether rose 2.2% to $ 3,594 and XRP rose 0.2% to $ 1.0865.

Ben McMillan, Chief Investment Officer of IDX Digital Assets, a factor-based crypto index strategy, said the number of new Bitcoin addresses has steadily increased after a significant decline, based on analysis of on-chain data. T-It turned off earlier this year, and the number of Bitcoins has increased and it has been removed from the exchange.

Both the new address and the move away from Bitcoin from the exchange are “structurally bullish signs”.

That said, while Bitcoin’s structurally bullish case is strong, “there remains a significant downside risk in the short term,” McMillan said.

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