Bitcoin Surges to Six-Week High as Inflows Increase
Bitcoin has reached its highest level in six weeks, with inflows picking up at the beginning of October. This month has historically seen gains for the token, and smaller cryptocurrencies like Ether, Litecoin, and Solana have also experienced rallies. The surge comes as traders anticipate the trial of Sam Bankman-Fried, the founder of bankrupt crypto exchange FTX, which is set to commence on Tuesday.
According to Caroline Mauron, co-founder of digital-asset derivatives liquidity provider OrBit Markets in Singapore, there have been significant buying flows likely driven by the start of a new accounting quarter. The resulting moves were further amplified by limited weekend liquidity.
Mauron predicts that the rally will continue in October, as it is typically a positive month for crypto markets. She believes that $30,000 will be the next major resistance level for Bitcoin.
Bitcoin Climbs to Highest Level Since Mid-August
Bitcoin has surged by 3.9% to reach $28,173, its highest level since August 17th. Although the token gained 4.1% in September, it experienced an 11% drop last quarter. However, Bitcoin has consistently increased in value during October over the past four years.
The rally has also been fueled by speculation that the US Securities and Exchange Commission will eventually approve BlackRock Inc.’s Bitcoin ETF proposals. Despite the regulator deferring its decision last week, Hayden Hughes, co-founder of social-trading platform Alpha Impact, believes that approval is still likely.
Last week, Bankman-Fried lost his latest bid for release from a federal jail before his trial. The US government accuses him of running a multibillion-dollar fraud at FTX over several years. Bankman-Fried has pleaded not guilty.
A wallet connected to FTX that was hacked in November 2020 has shown activity for the first time in nearly a year. CoinDesk reported that over $4 million worth of Ether tokens were moved.
Hot Take: Bitcoin Continues to Surge Amid Positive Market Conditions
The surge in Bitcoin’s price, along with the rallies of other cryptocurrencies, demonstrates the positive market conditions for crypto investors. October has historically been a month of gains for the token, and this trend is expected to continue. The anticipation of Sam Bankman-Fried’s trial and speculation surrounding the approval of BlackRock Inc.’s Bitcoin ETF proposals have also contributed to the rally.
Despite challenges faced by Bankman-Fried and the FTX exchange, the crypto market remains resilient. The recent activity in a hacked wallet linked to FTX highlights ongoing security concerns but does not appear to have significantly impacted market sentiment. As we move forward into October, all eyes will be on Bitcoin as it approaches the next major resistance level at $30,000.
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