Bitcoin rises to the highest since May, is now up 30% in October
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Bitcoin rose above $57,000 Monday morning, extending its two-week rally.
The cryptocurrency gained more than 3% Monday to reach $57,597.60, the highest level since early May, according to Coin Metrics. Ether added nearly 2% to $3,599.22.
The comeback — a gain of another 12% would take it back to its all-time high of about $65,000 — comes amid increasing hopes and expectations that a bitcoin futures ETF could be approved soon, as well as recent comments from the heads of the Federal Reserve and Securities and Exchange Commission, who said they have no intention to ban bitcoin, which seemed to “embolden” investors, Ned Davis Research noted.
NDR’s Pat Tschosik noted that bitcoin and gold’s one-year correlation has been dropping to the point where it’s about to turn negative.
“Bitcoin could be seen as the preferred inflation hedge if the dollar and real rates are rising,” he told CNBC.
The cryptocurrency is now 31% up for the month and 98% up for the year. Many are expecting this rally to be the door to the next all-time high. Though Ned Davis notes bitcoin tends to have a correction every 40 days, on average.
The latest run-up “follows a breakout above resistance from early September, which targeted the all-time high, so we would view any resulting consolidation as temporary,” said Katie Stockton of Fairlead Strategies. “For those who are looking to add exposure, the implications would be to wait a couple weeks, noting that there is room to initial support defined by the cloud model, currently near $47-$48K.”