BTC Eyes $58K in a 30% Rally in October as Outlook Stays Bright
12 Oct 2021 · 3rd Party Analysis
- Bitcoin shifts gears with price climbing near $58K as traders sustain the buying momentum
- Prospects for regulations and wider adoption remain positive as the fourth quarter unfolds
What’s Trading in the Markets?
Bitcoin continues to reach new highs for October as traders remain confident the rally still has potential. The price of bitcoin built on its strong gains from earlier in the month and reached a six-month high on Monday. In other words, the orange coin pushed above $57,000, with a session high of $57,800 a coin.
With that in mind, the original cryptocurrency is now trading 30% higher since the start of October. Moreover, the gains amount to over 40% for the past two weeks.
Looking ahead, bitcoin’s price needs just about 12% to regain its all-time high of $64,800 made on April 14. Furthermore, increasing hopes for crypto-friendly regulations weigh on the positive outlook for the fast-emerging market.
Recent comments from the US Federal Reserve and the Securities and Exchange Commission have strongly improved the market sentiment. In detail, the heads of the two regulatory bodies said earlier this month they have no intention to ban bitcoin.
JPMorgan CEO Says Bitcoin is “Worthless”
Fresh comments from Jamie Dimon, CEO of investment bank JPMorgan, delivered mixed messages to crypto markets. Participating in an online event, Mr. Dimon labeled bitcoin as “worthless”.
However, he also mentioned clients of the bank are increasingly demanding access to the token. On that note, Mr. Dimon said, the bank is committed to providing access to bitcoin trading.
“Our clients are adults. They disagree. That’s what makes markets,” Jamie Dimon said. “So, if they want to have access to buy yourself bitcoin, we can’t custody it, but we could give them legitimate, as clean as possible, access.”
Dive Deeper in the Financial World
In other sectors of the financial markets, US crude oil prices surged to a seven-year high above $82 a barrel. The price jump to levels last seen in 2014 was underpinned by strong demand amid supply shortage. Meanwhile, in forex markets, the US dollar is keeping firm against a weaker euro. The EUR/USD pair maintains its sideways trading near an 18-month low of around 1.1550.
Wall Street equities, on the other hand, tumbled on Monday amid increased fears the global economy is slowing down. As a result, the Dow Jones declined about 250 points, while the Nasdaq Composite and the S&P500 fell 0.7% each.
What to Expect in the Markets?
Traders and investors are bracing for the third-quarter earnings season which kicks off tomorrow with results from JPMorgan. Along with the investment bank, asset manager BlackRock will also publish its quarterly earnings on Wednesday.
On Thursday, the market will be watching reports from Morgan Stanley, Citigroup, Bank of America. Next, Goldman Sachs delivers its third-quarter corporate performance on Friday.
Economic News Today (EST time)
Today’s agenda holds a fairly light number of economic events. The German ZEW economic sentiment for October will be released at 05:00. Later, at 10:00, the US reports its JOLTs job openings for August.