Cryptocurrencies Trade Sideways, Bitcoin Jumps to $56K

11 Oct 2021 · 3rd Party Analysis

Bitcoin logo together with a vector of a rocket to the moon on white background both over a candlechart background. Cryptos Trade Sideways, Bitcoin Jumps to $56K


In Summary:

  • Crypto assets hovered sideways during the weekend as traders assessed recent news
  • Bitcoin’s price bounced to a high of $56,700 on Monday, setting a new monthly high

What’s Trading in Crypto Markets?

Cryptocurrencies remained steady over the weekend with Bitcoin hovering near $55,500 a coin. Crypto market participants were able to sustain the recent rally near its monthly highs amid an improving outlook.

That being said, the price of Bitcoin rallied to a session high of $56,700 early on Monday. The level marked the highest point reached in about four months. Other major coins floated near recent peaks, too. Ether, for example, gravitated towards $3,500 per coin as the market was quiet and digesting recent developments.

Over the past few days, the crypto market capitalization has been keeping above $2.3tn as a slew of positive events has lifted expectations.

Bright Outlook for Cryptocurrencies

Lately, the projections for crypto assets have largely brightened. The positive expectations for the fourth quarter are a result of several important market updates. First, three major financial institutions in the US appear keen to present regulations that would allow the rally to resume. Instead of banning cryptos like China, the Securities and Exchange Commission is ready to work for a regulatory framework over digital assets.

In addition, the Treasury Department and the Federal Reserve are also leaning toward a more crypto-friendly regulatory environment.

In the meantime, investment banking giant JPMorgan presented a report with says institutions move their funds to bitcoin instead of gold. In other words, JPMorgan published research that found more than $20bn has been allocated into bitcoin funds this year. In contrast, gold funds have suffered redemptions of over $10bn since January.

What to Expect in the Markets?

The financial markets this week are set for increased volatility due to a few factors. On the one hand, traders and investors will be expecting fresh inflation data coming from the US. The consumer price index report is slated for release on Wednesday. It will show whether high inflation has persisted above 5% in September.

In addition, market participants will parse through the latest Fed meeting minutes. The Federal Reserve’s policy meeting summary will be published Wednesday. It is expected to hold key insights into the Fed’s plans on tapering, or reducing, the asset purchase program. Furthermore, the meeting summary might reveal a timeline on the anticipated interest rate increase.

Moreover, the week marks the start of the earnings reports season. All publicly traded US companies will release their financial figures for the third quarter. The earnings data kicks off with Wall Street banks revealing how they performed in the quarter ended September. In more detail, Goldman Sachs, JPMorgan, Citigroup, Bank of America, Wells Fargo, and Morgan Stanley will report this week.

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