Bitcoin hits three-month high This week could be big for Bitcoin and crypto assets, says an analyst.
Bitcoin soared above $69,000 overnight on Sunday, hitting its highest price in three months.
The price surge caps bitcoin’s strongest week in two months, adding more excitement to the bubbling market.
As Bitcoin nears $69,000, analysts are looking for upside momentum.
With Bitcoin nearing its all-time high of $73,000, market watchers are predicting the odds of a new price record this year.
Here’s what analysts say are the tailwinds that are boosting Bitcoin’s sails.
ETF demand
Mena Theodorou, co-founder of crypto exchange Coinstash, said that rising demand for spot bitcoin ETFs in the US has fueled bitcoin’s rise.
Institutional buyers scooped up $2.1 billion worth of bitcoin ETFs last week.
That flow was backed by 36,500 bitcoin, more than 80 times the amount added to the daily supply by mining.
Join the community to get our latest articles and updates
“We’re seeing investors buy bitcoin exponentially faster than they can mine it,” Theodorou said.
Rising ETF demand is just one part of a broader institutional push that could take Bitcoin to new price highs.
This is according to Jonathan de Wet, Chief Investment Officer at crypto trading firm ZeroCap.
“Institutionalization is a short-term catalyst that will bring us above all-time highs – combined with monetary easing in 2025 for a follow-through,” de Wet said.
Zerocap chief MicroStrategy highlighted plans to become a bitcoin bank and SEC approval of options on bitcoin ETFs as part of the institutional push.
Market bliss
The US stock market and gold trading hit new all-time highs last week.
As total outstanding US public debt has risen by nearly half a trillion dollars since last month, traders are showing a bigger appetite for riskier assets as concerns over the sustainability of financial debt mount.
Analysts at crypto ETP provider ETC Group say bullish sentiment has returned.
They pointed to their cryptocurrency sentiment index, which rose to its highest level since March.
Crypto peaked in March as market cap topped $2.8 trillion and Bitcoin topped $73,000.
“Bitcoin is increasingly viewed as an alternative asset to US Treasuries, which has contributed to the latest surge in the prices of bitcoin and other cryptocurrencies,” said ETC Group analysts.
What happens next?
Bitcoin is still subject to market swings and geopolitical factors.
For example, some $5.5 billion in bitcoin options expire on October 25.
Analysts at crypto exchange CEX.IO Identified This is the second largest bitcoin options expiration to date.
If Bitcoin’s momentum falters, massive options expiration could push its price towards $64,000.
“However, if Bitcoin rises above $70,000, options sellers will have to hedge by buying Bitcoin, which will increase the bullish momentum,” CEX.IO analysts noted.
Market watchers point to Bitcoin’s strong performance in the last quarter of the year as another clue.
“It’s shaping up to be a big week for crypto markets,” Theodorou said.
Crypto market movers
Bitcoin retreated slightly today and is trading at $67,209. Ether has traded flat over the past 24 hours and is at $2,663.
What are we studying?
Three Signs Crypto Markets Are ‘Risk-On’ As Bitcoin Reaches $70,000 NewsBanana zone? – Milk RoadVitalik went out of ‘founder mode’. Does Ethereum Just Need It? – Not boundBTC Whales Are Accumulating By 2020 – Milk RoadFraudster who used phony Coinbase platforms to steal millions gets five-year sentence ― News
Osato Awan-Nomayo Our Nigeria based DeFi representative. He covers DeFi and technology. To share tips or information about articles, please contact him here [email protected].
Related TopicsBITCOINBITCOIN ETF
