Bitcoin has soared by a total of 30% in this month of October so far and the price has climbed to $13,700. Here are possible reasons why BTC is rising.
October 28, 2020 | AtoZ Markets – After several days of consolidation, Bitcoin jumped more than 4%, testing the $13,700 mark. At such levels, the flagship cryptocurrency traded short-term in June 2019. The strengthening of the bitcoin rate was observed against the background of a sharp decline in the American stock index S&P 500 the day before, as well as indistinct dynamics in the gold market.
However, the risks for Bitcoin still exist. The main one is the potential deleveraging in the financial markets. If the slide of stock indices turns into a collapse, Bitcoin may repeat its fall in March, when its price fell by more than 2 times. If this extremely unfavorable scenario is avoided (through a government bailout package or Fed support measures), the BTC rate may not meet significant resistance up to highs above $20,000 and reach them in the coming months.
With this said, let’s have a look at the plausible reasons that could have led to the Bitcoin price increase.
Reasons why Bitcoin price is soaring
Two days ago, Morgan Creek co-founder Anthony Pompliano emphasized that BTC’s dependence on the stock market has almost disappeared. This is a positive signal not only for this asset but for the entire cryptocurrency industry.
Analysts associate the latest inflow of capital into the crypto sphere with the launch of a crypto exchange in Singapore dubbed DBS Digital Exchange. The platform, as AtoZ Markets reported, was established by the local bank DBS. According to observers, investors from Southeast Asia have intensified, as they have another channel to penetrate BTC.
Ronnie Moas, the founder of Standpoint Research, shares the view of those experts who expect to reach $14,000 in the very near future.
Meanwhile, analysts at Santiment argue that blockchain-level metrics and monitoring community sentiment on social media are now more cause for concern and may indicate market overheating.
Do you think there are other reasons Bitcoin soared? Let us know in the comment section below.