Bitcoin Marches Higher, Surges Above $51,000 as Outlook Improves
06 Oct 2021 · 3rd Party Analysis
- Bitcoin rally continues as the market outlook has strengthened
- The price of bitcoin is higher by nearly 27% since Sep. 30
What’s Trading in the Markets?
The price of bitcoin rose to a one-month high above $51,000 following several days of substantial gains. Moreover, the leading cryptocurrency has appreciated nearly 20% this month, and over 27% since Sep. 30.
On that point, the crypto community has been so elated it called this month Uptober, referring to the upside trend.
In other markets, stocks and currencies traded fairly mixed and searching for direction. In more detail, the three main indexes in the US finished the day in positive territory. The tech-heavy Nasdaq Composite advanced more than 1.2%. In addition, the S&P500 added about 1%, while the Dow Jones rose 0.9% on Tuesday.
Currencies, on the other hand, were influenced by a strong move up in the US dollar. The EURUSD pair, for example, declined to levels near a 15-month low at 1.1570. The GBPUSD rate declined 0.6% today, reaching a session low of 1.3540. The forex market, in general, is positioning for the economic news slated for Thursday and Friday.
What’s Behind Bitcoin’s Rise Above $51K?
So far in October, Bitcoin has been enjoying strong tailwinds that have lifted the entire crypto market capitalization to $2.2tn. Adding to the positive sentiment this month, a recent report from Bank of America highlighted the importance of bitcoin.
That being said, strategists in the investment bank think bitcoin is now “too large to ignore”. Furthermore, they cite the growing crypto market could become an “entirely new asset class”. On top of that, the report says cryptos are still in the “first inning”.
The paper from Bank of America, a top US investment bank, is the latest sign of broadening cryptocurrency adoption. As bitcoin and the digital space become more popular, crypto players remain certain the industry will keep attracting new institutions.
Dive Deeper in the Financial World
In the financial markets today, the general mood is rather muted. Stocks in Europe are trading deeply in the red with the Stoxx 600 down about 2% on the day.
On Wall Street, futures today point to steep losses at the opening. Futures contracts tied to the Nasdaq Composite were lower by 1.5%. In addition, Dow Jones futures shed roughly 400 points as investors remain wary of uncertainties ahead.
What Market News to Expect?
On the economic data front, Thursday will bring the initial jobless claims for the US. Afterward, on Friday, the market will be watching for the latest nonfarm payrolls report. The nonfarm payrolls data is among the most important economic gauges. It will show how many new jobs were added for the month of September.
Economic News Today (EST time)
Today, the market will be monitoring the ADP nonfarm employment change for September at 08:15. Additionally, the crude oil inventories will arrive at 10:30.