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Bitcoin, which will close the month of October with gains of over 25%, has risen again, adding nearly 5% in the past 24 hours and pushing it above the psychological level of $ 14,000 per bitcoin for the first time since the beginning of 2018.
Bitcoin’s latest rally has raised the price of other major cryptocurrencies, including Ethereum, Ripple’s XRP, chainlink and litecoin, all between 3% and 5%.
The surge in bitcoin’s price of over $ 14,000 per bitcoin comes shortly after a series of huge bitcoin transactions, worth over $ 100 million, and follows the expiration of $ 750 million of bitcoin options contracts on Friday.
Bitcoin’s price soared until October, driven by a series of positive and bitcoins … [+]
SOPA / LightRocket images via Getty Images
Bitcoin and cryptocurrency traders have been braced for volatility in the past 24 hours, with high-value bitcoin options contracts – in effect, traders betting on what they expect bitcoin’s price to be in the future – expiring. Bullish or bearish trends can be exacerbated by such deadlines.
Bitcoin’s push to Ethereum, Ripple’s XRP, chainlink and litecoin pushed the combined value of the world’s cryptocurrencies to over $ 400 billion, a level not seen since April 2018, according to data from CoinMarketCap.
Meanwhile, the bitcoin and cryptocurrency market has been rocked by $ 100 million worth of bitcoins removed from two exchanges in the past few hours, the San Francisco headquarters Coinbase and the Luxembourg one Bitstamp. A Twitter bot set to track large bitcoin and crypto transactions, made by so-called “whales,” recorded the three separate transactions.
Bitcoin, which rose to highs of $ 14,000 per bitcoin on Bitstamp before falling back to trade around $ 13,900, has found support in the past couple of months from a spate of bullish bitcoin news and a growing belief among some investors that bitcoin will serve. as a hedge against a wave of inflation that they see ahead. This has led to the decoupling of bitcoin from the stock market in the last week or so.
“For most of the pandemic, bitcoin remained correlated with equities,” Andrew Ballinger, an associate of digital asset manager Wave Financial, said in an email.
The price of bitcoin has jumped over $ 14,000 per bitcoin today for the first time since the beginning of 2018.
Coinbase
In June, the one-month bitcoin-S&P 500 correlation hit an all-time high of 66.2%, according to data from Skew Analytics. Since June, this one-month correlation between bitcoin and the S&P 500 has remained well in the double digits, for the most part hovering around 40% -50%, until the positive double-digit correlation broke off this month.
“I wouldn’t be entirely honest if I said I don’t think a sharp decline in equities would have any effect on the still nascent digital asset economy, but I think this return to single-digit and potentially negative correlation is a step in the right direction. for those who believe in the bitcoin store of value thesis, “Ballinger added.
“With continued uncertainty surrounding the economic recovery, investors could turn to digital currencies rather than stocks and further test bitcoin’s digital gold thesis.”
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