Bitcoin hits a five-month high
Bitcoin hits a five-month high
Bitcoin

Bitcoin hits a five-month high

By Marco Cavicchioli - 7 Oct 2021

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Yesterday, the price of bitcoin hit a new high, back above $54,000, with a brief spike to over $55,700. The last time it had been at these levels was on 13 May, five months ago. 

The point about Bitcoin’s value: 

It is worth noting that in its entire history, the price of bitcoin had only previously been above $53,000 three times, and only in 2021: 

  • The first time it exceeded this figure was on 19 February, and it remained there until the 23rd of the same month (i.e. for only 4 days). 
  • The second time was on 9 March, and lasted until 22 April, leaving aside the days between 24 and 26 March when it briefly dropped to $50,000.  
  • The third was from 26 April to 13 May. 

In total, therefore, the price of BTC in its entire history had only been above $53,000 for 70 days, which is just over two months in over twelve years. 

Why Bitcoin is hitting a new high

It is possible that the enthusiasm is linked to the hypothesis that the SEC may soon approve the first bitcoin ETF authorized on the US markets. 

According to several experts, this approval is now not only highly likely, but even imminent, and this is generating optimism in the crypto markets. 

The SEC has refused to approve an ETF for years, but some of the more recently proposed ETFs are more likely to succeed because they are based on already authorized and regulated products such as the CME’s BTC futures. 

Bitcoin high
Bitcoin price is 53k dollars

Yesterday, the trading volume of bitcoin futures at the CME increased by 7.49%, which is very similar to the 8% increase in the price of BTC.

It is not just bitcoin that is performing well. While its dominance has recently increased from a meagre 41% on 4 October to 43.5% today, the entire cryptocurrency market capitalization has also risen significantly. And it has done so by going from $1.9 trillion at the end of September to a current $2.4 trillion. The price of ETH has risen by 25% over the past 7 days, compared to a 30% increase for BTC.

Eric Demuth on the use of cryptocurrencies 

According to Bitpanda CEO Eric Demuth, the use of cryptocurrencies now goes beyond conventional forms of investment, thanks in part to the rise of retail investors in Europe. 

These are new investors who have entered the markets in the last 12 months and who think about investments in a different way than the norm. However, they are often inexperienced investors who, according to Demuth, need to be helped with their education so that they can acquire the necessary knowledge to operate in these markets. 

Demuth believes it is crypto platforms that should be promoting investment education.

The incredible +373% rise in the price of Shiba Inu (SHIB) over the past seven days is due to retail investors hoping for quick and easy short-term gains. In the absence of proper knowledge, it is not unlikely that a significant proportion of them will eventually lose out. 

 

Marco Cavicchioli

Born in 1975, Marco has been the first to talk about Bitcoin on YouTube in Italy. He founded ilBitcoin.news and the Facebook group" Bitcoin Italia (open and without scam) ".

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