Bitcoin Price Surges Past $55,000 as Rally Goes Full Steam Ahead

07 Oct 2021 · 3rd Party Analysis

Vector Bitcoin Logo with an upward trend over a candle chart background.Bitcoin Price Surges Past $55,000 as Rally Goes Full Steam Ahead

WRITTEN BY ThorFX

In Summary

  • The price of bitcoin surged for another day on Thursday, hitting a high of $55,700 a coin
  • October has been a period of solid gains for bitcoin holders as the token is up almost 30%

What’s Trading in the Markets?

The price of bitcoin surged on Wednesday and remained well-bid early on Thursday as the October rally is going strong. That said, the original cryptocurrency jumped past $55,000 on Wednesday and reached a five-month high of $55,700 on Thursday.

The upside swing arrived as an extension of a persistent climb in early October. In more detail, since Oct. 1, the orange coin has advanced 28%, and more than 35% since Sep. 30. Longer-term, bitcoin is about 17% away from its all-time high set April 14. The yearly performance, meanwhile, stands at a 90% gain to current level from an opening price of $29,000 on Jan. 2.

Broadly, the entire cryptocurrency market has advanced to a valuation of over $2.3tn. To that end, alternative coins have also been gaining alongside bitcoin. Ether, the second-largest cryptocurrency, has added 3% this week, while Dogecoin has gained about 10%.

In other markets, global stocks struggled to perform on Wednesday and remain largely muted early Thursday. On Wall Street, futures today are positive as investors try to stage a comeback from yesterday’s choppy trading session.

Dive Deeper in the Financial World

The recent gain in bitcoin’s price came after several small steps from Washington in the direction of regulating crypto. After months of fears that regulatory pressure could suffocate bitcoin’s rise, a surprising turn unfolded this week. In detail, the Securities and Exchange Commission, the body largely responsible for regulating crypto, presented an optimistic outlook for the industry.

The SEC Chairman, Gary Gensler, told Senate his agency had no plans to ban bitcoin. Moreover, his comments mirrored those of the Fed Chair, Jerome Powell, and the Treasury Secretary, Janet Yellen. All three institutions appear widely in favor of introducing a regulatory climate that would allow the positive momentum to continue growing.

What to Expect?

As the week is coming to its end, investor focus is now shifting to the latest nonfarm payrolls report. The NFP data will show the growth of the US economy in terms of newly employed people. In other words, the jobs report will indicate how many people were hired in September by US employers.

The event will be closely monitored by traders and, as a result, high volatility could arrive to the currency market. In addition, the price of gold could also experience increased jitters.

Economic News Today (EST time)

Market participants today will be monitoring the latest jobless claims from the US at 08:30. The report will highlight how many first-time applications for jobless benefits were received by the Labor Department in the previous week.

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