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Bitcoin trades at $55,000 as trading volumes rise
Bitcoin neared five-month highs and boasted of surpassing $1 trillion market capitalization on Thursday, extending gains after Bank of America described cryptocurrencies as “too big and important to ignore.”
The leading cryptocurrency today was trading at about $54,790, up 7%, while the market capitalization was around $1.03 trillion, and over the past seven days, the coin has added gains of more than 27%.
Cryptocurrencies made a new and big jump in price this week, most notably Bitcoin, which crossed $55,000, hitting its highest level since April, and other cryptocurrencies followed suit.
Bitcoin and Optimistic Forecast
The latest reports indicated that with the increasing interest of institutional investors in digital currencies, the global cryptocurrency market is expected to reach $4.94 billion by 2030 and this could add to the bullish crypto sentiment in October.
Hash is up more than 800% since the beginning of the year, and the leading currency is likely to hit $100,000 by the end of the year, which will surely give a boost to other cryptocurrencies.
In its first research report on cryptocurrencies, Bank of America said, “With a market capitalization of $2 trillion and more than 200 million users, the world of digital assets is too large and important to ignore, and we believe that crypto-based digital assets can form a new asset class.” completely”.
On the other hand, the International Monetary Fund (IMF) warned last Friday that digital currencies pose new challenges to financial stability. organizational.
Is it time to invest in digital currencies?
Historically, October has been a positive month for cryptocurrencies as it is usually bullish, and indeed Bitcoin on Friday advanced to its highest level since mid-September backed by positive investor sentiment, as well as supportive comments from US Federal Reserve Chairman Jerome Powell.
The first on Thursday (September 30) testified before Congress that the Fed has no intention of banning cryptocurrencies, which fueled optimism about the crypto market, the digital asset market also benefits from the seasonal impact in addition to positive market fundamentals in general, the quarter The last of the year is a strong performance of digital assets, and we could see new all-time highs.
Bitcoin is trading above $54,000, which indicates that the price could rise further, if the price breaks the strong resistance level that Standing at $55,000, the next target might be $60,000.
However, if the bitcoin price drops below the $50,000 support, it will act as a strong “sell” signal that will add further pressure on the entire crypto market.
Professional Trader and Analyst, economist in Financial and Forex market since 2004.holds an MBA from the American University in Egypt. Mohammed works as an economic writer and technical & fundamental analyst for many international Forex and financial trading companies in both English and Arabic on a daily basis.