- At the time of publication, bitcoin was trading at R870,000, up 8.7 percent in the previous 24 hours.
- It was the highest price since May 12, before a Chinese crackdown on its local cryptocurrency and other negative headlines sent the price below R450,000.
- The bitcoin price had reached an all-time high near R970,000 in February.
- According to Messari data, the latest increase has put bitcoin’s market worth back beyond $1 trillion.
Bitcoin, the world’s largest cryptocurrency, has surpassed R810,000 for the first time in nearly five months, as bullishness returns to the market after a dip in recent months.
At the time of publication, bitcoin was trading at R870,000, up 8.7 percent in the previous 24 hours. It was the highest price since May 12, before a Chinese crackdown on its local cryptocurrency and other negative headlines sent the price below R450,000. The bitcoin price had reached an all-time high near R970,000 in February.
According to Messari data, the latest increase has put bitcoin’s market worth back beyond $1 trillion.
“Those who have been monitoring this asset attentively over the previous few months will not be surprised by Bitcoin’s ascent to a five-month high,” said Jason Deane, analyst at Quantum Economics.
According to Deane, markets frequently fluctuate based on momentum and sentiment, particularly after trading in a price range for an extended length of time. Bitcoin usually traded between R450,000 and R600,000 in June and July, and then between R600,000 and R750,000 in August and September.
Sentiment has dramatically improved in the first week of October, indicating a shift away from the market panic of the preceding few months. Bitcoin has risen by more than R150,000 since October 1, amounting to a 25 percent gain so far this month.
According to Kraken researchers, the fourth quarter has traditionally been the greatest for bitcoin, with an average return of 119 percent dating back to 2011. In the fourth quarter of last year, the price nearly tripled.
Denis Vinokourov, research director at Synergia Capital, credited the recent rally to U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler’s remark to Congress on Tuesday that the SEC had no plans to ban cryptocurrencies.
“Gensler may have come across as anti-crypto, but he is not here to eliminate crypto,” Vinokourov explained.
As Charles Morris, the founder of ByteTree Asset Management, put it, “tectonic plates have come together with the threat of a ban being lifted.”
According to Morris, traditional markets are failing in the current macroeconomic environment, with decreasing stock prices, a probable energy crisis, and concerns about losses in the Chinese property industry.
“Global markets are derisking,” probably largely due to fears over a possible financial crisis induced by debt repayment woes at the Chinese real estate developer Evergrande, the Kraken analysts wrote in a monthly report.
That might mean that “bitcoin is arguably becoming more resilient against traditional market turbulence,” according to the report.
Morris believes that a further adoption drive by Wall Street and established financial firms could be the catalyst for bitcoin’s next surge.