Bitcoin broke a new five-month high on Friday after topping $60,000. The digital asset started to climb weeks before the start of October, a historic bullish month for cryptocurrencies. This rally was mostly driven by rumors that the Securities and Exchange Commission (SEC) would approve the first Bitcoin ETF in the United States.
With such news circulating in the market, the traders have stepped up their activities in the market. The rumors sparked massive buying in the market and this led to the price hike we are currently seeing in the market.
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Bitcoin has always been expected to break through this price point, but it ran into several roadblocks that drove the price back down. The highlight was the $52,000 market that broke out of the digital asset at the beginning of September. The expectations were that the asset would ride the wave up to $60K. However, the market crash pulled the price down towards the $40K price range.
Buy the rumor, sell the news?
Investors were buying into the rumors that led to the SEC’s ETF decision. This has contributed significantly to the current rise. The order books are filled to the brim as investors, old and new, put more money into the market.
However, recent BTC price gains have raised questions regarding the current market dynamics. Some said the market is responding to people buying rumours. But when news of the approval of a Bitcoin ETF arrives, investors who have been hoarding for the past two weeks will dump their bags as they sell the news.
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Concerns have been raised about this and investors are wary of market dynamics. However, others said this is only the beginning of the march. If the market indicators are going well, the market will likely ride that rally into the first quarter of 2022.
Bitcoin price movements
Bitcoin has now reached over $60,000 for the second time on Friday. It previously reached the price point but soon after fell to $59K. The price later recovered above $60K, peaking at $60,351, according to TradingView.
BTC price breaks above $60K for new five-month high | Source: BTCUSD on TradingView.com
BTC is making great strides in recovery and has once again exceeded expectations. The market was expected to slip into an extended bear market but the asset shook the bears. At this point, Bitcoin is less than 10% away from a new all-time high.
At the time of writing, BTC was trading just under $60,000 at $59,919, with a total market capitalization of $1.129 trillion. The cryptocurrency market capitalization has not been excluded from this recovery as the total market capitalization now stands at $2.45 trillion.
Featured image from Pixabay, chart from TradingView.com