Bitcoin Price Jumps Over $49,000, Sterling Aims to Erase Losses

04 Oct 2021 · 3rd Party Analysis

Bitcoin logo with Sterling Pound symbol both over a candle chart background. Bitcoin Price Jumps Over $49,000, Sterling Aims to Erase Losses

WRITTEN BY ThorFX

In Summary

  • The price of bitcoin rallied to over $49,000 on Sunday as October arrived with a bang
  • The British sterling rises near the end of last week to pare some of the heavy losses from earlier

What’s Trading in the Markets?

The price of bitcoin spiked to a high of $49,200 late on Sunday. The increased buying momentum was accumulating since Thursday as the market propelled higher to end September on a positive note.

Early on Monday, however, the price of bitcoin slipped slightly. In more detail, easing from its highs, bitcoin is now trading moderately below $48,000 per token. In the meantime, market participants gear up to start the trading week. The entire crypto market rose over the past week to reach a valuation of about $2.1tn. Along with it, bitcoin’s market share also climbed to settle near 43%, or almost $900bn. Ether, the second-most valuable coin, is trading near $3,450 with a market capitalization of nearly $400bn.

What About Currencies?

In forex markets, as currencies are hitting their stride on Monday, the British pound is sitting near a three-day high at 1.3550 against the US dollar. The GBPUSD was aggressively sold at the start of the previous week. On Thursday and Friday, however, the sterling advanced about 1%, paring some of the losses.

The EURUSD turned lower during the first hours of today’s session. The pair reached an intraday high of 1.1613 and is currently floating below the 1.16 threshold.

Where are Stocks Going?

On Wall Street, the Dow Jones Industrial Average gained considerably on Friday. In other words, the 30-stock index added over 480 points to start the month strong.

In addition, the S&P500 and the tech-heavy Nasdaq Composite also pushed higher by 1.2%, and 0.8%, respectively. US stock futures turned negative ahead of the open with futures contracts on the Dow lower by about 0.3%. Moreover, S&P500 futures and Nasdaq futures were down 0.4% each as US traders were getting ready to start the day.

Dive Deeper

This week highlights several important developments in the market. First, it’s the beginning of the final quarter of 2021. To that end, market participants are bound to endure increased volatility across the financial markets.

Second, elevated jitters from mixed economic updates are fueling concerns that the rally in stocks might grind into a halt. Cryptos, on the other hand, remain well-positioned to experience new highs, analysts say. With the growing support of institutions, bitcoin could rise to new highs amid high inflation and an uncertain outlook for the global economy.

El Salvador made waves last week when President Nayib Bukele said the country now mines bitcoin with volcanos. In addition, testimony by Jerome Powell, the Chairman of the US Federal Reserve, was cheered by crypto supporters. Mr. Powell said before Congress the US central bank had no intention to ban cryptocurrencies.

What to Expect?

The highlight of the week is the US jobs report scheduled for Friday. The US Labor Department will release the monthly non-farm payrolls report. More precisely, the number of new jobs added for September will show if the labor market continues to recover the jobs lost during the pandemic. Furthermore, the unemployment rate will also be released on Friday.

If you’ve been waiting to join the crypto market revolution and are eager to experience the trills of cryptocurrency trading, head over to our Accounts Page to see what we have to offer.

Economic News Today (EST time)

Today’s economic updates will be focused on Australia. The Australian central bank, the Reserve Bank of Australia, will release the interest rate decision for October.

Besides, the bank will also provide its rate statement. Both reports are slated for 11:30 pm. Prior to it, however, the retail sales report for September will be published at 08:30 pm.

Venture Through the Realms
With ThorFX

Become an Affiliate