Bitcoin hit $55,000 for the first time since mid-May, as cryptocurrency prices continue to rise in October. Bitcoin exceeded $55,833 according to Coinmarketcap on Friday.
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The last time it moved at similar levels was in May before it collapsed after Elon Mush tweeted that Tesla would stop accepting bitcoin for car purchases due to environmental concerns.
Other leading cryptocurrencies have followed bitcoin’s suit in recent weeks, with Ethereum, Binance Coin, and dogecoin all rising by between 15-30% since this time last week.
The price of bitcoin started to move upward after a comment by Federal Reserve Chairman Jerome Powell that the US has “no plan to ban crypto” or to follow China in banning cryptocurrencies. Edward Snowden believes that China’s announcement to ban bitcoin has “made bitcoin stronger“.
The available supply of bitcoin in the market is becoming less and less. The amount of bitcoin held on cryptocurrency exchanges is close to its lowest levels. On-chain analytics provider Santiment has reported that the supply of bitcoin sitting on exchanges has fallen to levels not seen since May 2019. With declining supply and potentially growing demand, it will be exciting times for bitcoin and other cryptocurrencies in the coming months.
The new rally is accompanied by a high volume of transactions. One of the notable transactions was a $1.6 billion bitcoin purchase through market orders in just 5 minutes. Liquidations seem relatively small, around $17 million at the time, so this looks a whale or an institutional investor that moved in to get a better position at the pole.
The Fear & Greed index is now at 71, as investors are getting more greedy. At these price levels, more people are investing in bitcoin once again, hoping it will reach $100,000 or even $ 500,000 and change their lives.
Bitcoin’s dominance is growing very fast. We can expect to see a rise in mainstream media coverage about bitcoin and cryptocurrencies, more investors jumping in, and new all-time highs.
At the same time, George Soros’ fund confirmed that he owns some bitcoin. Dawn Fitzpatrick, CEO, and chief investment officer of Soros Fund Management said: “I’m not sure bitcoin is only viewed as an inflation hedge here. I think it’s crossed the chasm to mainstream.”
The overall crypto market is now valued at $2.3 trillion, up more than 15% since the start of October. The number of global crypto users grew to over 200 million in the first six months of 2021 according to Crypto.com Research. It’s definitely going mainstream.
Similarly, traditional financial institutions such as Bank of America (BoA) have launched digital currency operations. BoA released a comprehensive report entitled “Digital Assets Primer: Only the first inning“, which analyzes bitcoin, NFT, DeFi, and CBDC. While BoA believes that bitcoin is particularly important, it believes that the digital assets ecosystem as a whole has the potential to disrupt industries such as finance, technology, supply chains, social networks, gambling and more.
Bitcoin is stronger than ever before.
Every day we are reading about someone doing something with bitcoin and crypto. Just this last week, the Swiss national railways firm, SBB, has decided to allow customers to buy the cryptocurrency at its railway ticket machines. JPMorgan revealed that institutional investors are taking money out of gold and putting it into bitcoin. Cynthia Lummi, a US Senator has revealed that she bought bitcoin between $50,001 and $100,000.
It’s getting harder to imagine a future without bitcoin and cryptocurrencies.
While some may say that beauty is in the eye of the beholder, I don’t think so. All I can tell you is that I’m buying bitcoin and other cryptos, building an app to make the crypto wallet experience safer and simpler, and working on a mining project completely powered by solar energy. I am all in, and maybe I am biased, but my advice is to get into the market and buy what you can afford to lose.
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