Bitcoin to End the Week Higher After Putin Says Crypto Has Value

15 Oct 2021 · 3rd Party Analysis

Vectors of arrows signaling upward momentum ending the week next to Bitcoin logo over a candlechart background. Bitcoin to End the Week Higher After Putin Says Crypto Has Value

WRITTEN BY ThorFX

In Summary:

  • Bitcoin is on track to finish the week up about 8%, the price hovers near $60,000
  • Vladimir Putin, President of Russia, says cryptocurrencies have “value”

Bitcoin on Pace to Finish the Week Up

Bitcoin, and the broader cryptocurrency market, remain pinned near weekly highs on Friday. Market participants took some time on Thursday to digest recent developments as most coins were trading sideways. The price of bitcoin, the original cryptocurrency, is now floating right under $60,000, or just 8% below its all-time high.

Ether, on the other hand, surged about 7% yesterday and built on its gains earlier today. The upside momentum in the Ethereum token took the price to a high of $3,855. Still, both bitcoin and ether are higher for a third straight day today.

Moreover, both are looking to finish the week in positive territory. The orange coin is up slightly over 3% since Monday as the price is currency gravitating toward $57,500. The Ethereum network’s native token is higher by about 7% this week as its presently trading near $3,750.

Overall, the positive sentiment over the cryptocurrency market remained strong during the week. What’s more important, however, crypto proponents believe the fourth quarter will see increased buying momentum as mainstream adoption expands.

Russian President Putin Comments on Crypto

Adding to the flurry of upbeat projections, Russian President Vladimir Putin presented a largely optimistic outlook for crypto. In an interview with CNBC during an event in Moscow, Mr. Putin said he believes crypto “has value.”

In addition, he stressed that cryptocurrencies “are not supported by anything as of yet”. He went further to say that crypto “has the right to exist as a means of payment.”

Mr. Putin’s positive remarks on crypto arrive as the White House mulls over regulations around digital currency markets. On that front, US President Joe Biden is expected to present new rules that should govern crypto investors.

In the meantime, the Securities and Exchange Commission is about to decide next week if it would allow the first Bitcoin ETF. The step would mark a significant expansion of crypto into mainstream finance.

In contrast, China is now officially done with any crypto-related activity. The latest blow to crypto from Beijing arrived in September when officials banned all crypto transactions. This meant all bitcoin miners are now outside of China and in search of new places to host their mining operations.

Dive Deeper in the Financial World

In other sectors of the financial markets on Friday, investors remain largely optimistic about the economic outlook. Stocks on Wall Street advanced significantly yesterday, with the Dow Jones adding more than 500 points. In addition, the S&P500 and the Nasdaq Composite also rallied, each up about 1.7% on the day.

Gold prices, meanwhile, climbed to levels above $1,800 per troy ounce. Furthermore, the precious metal has gained solid traction this month as its price is up about 5% since Oct. 1. So too, the price of silver has been climbing over the past couple of weeks. For the period, silver has gained about 6.3% to the current market price of $23.50.

What to Expect in the Markets?

As US stock futures today hover slightly positive, investors expect the continuation of the earnings season. In more detail, the third-quarter financial report from investment banking giant Goldman Sachs will be released today.

Economic News Today (EST time)

The US retail sales report is expected to arrive at 08:30 today. Retail sales, a measure of purchases at stores, restaurants and online, is used to assess the health of the US economy. In this regard, heightened volatility could be expected in the forex market, particularly in the moves of the US dollar.

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