BTC for the first time since May at a cost of $ 55,000. What happened?
3 min read
BTC Price for the first time since May found itself above the level of 55,000 dollars, when, according to the CoinGecko portal, it tinkled at the level of 55,530 USD. At the time of writing, the most famous cryptocurrency is trading for just over $ 54,600.
BTC last cost more than $ 55,000 on May 12, 2021, shortly before Elon Musk and Tesla announced the suspension of BTC payments for their goods and services, arguing that BTC’s production was largely unecological. Subsequently, BTC was shaken by reports of a ban on cryptocurrency mining in China, which resulted in the BTC price falling to approximately $ 30,000.
However, since the beginning of October, BTC has been strengthening significantly again. It is driven by several positive reports, from Fed and SEC statements that they do not plan to ban BTC or other cryptocurrencies, to the growing adoption of BTC by major US banks. Undoubtedly, market sentiment is also helped by the fact that the BTC hashrate is gradually reaching the levels it was at before the big Chinese mining ban in May. BTC has thus virtually completely rid itself of Chinese influence, is as secure as before and is even more decentralized.
A combination of factors contributed to the price increase
As for its current price increase, it was probably a combination of several factors. Onchain’s CryptoQuant platform said BTC strengthened by 6.4% in two hours, mainly due to the fact that an unknown buyer bought BTC for $ 1.6 billion in just 5 minutes through purchase orders.
$ BTC price surged by + 6.4% in less than 2 hours, what happened?
1. Someone (s) bought up $ 1.6B worth $ BTC via market orders in just 5 minutes
2. BTC has decided where to go. New ATH is possible
3. Greed on the Crypto Market. FOMO started?Check👇https://t.co/sfh8C2Kotp
– CryptoQuant.com (@cryptoquant_com) October 6, 2021
Lex Moskovski said the BTC pump had liquidated a $ 26 million short position in 10 minutes, which also helped boost the price.
$ 26M of #BTC shorts got liquidated in 10 minutes pic.twitter.com/ZyVf0A3ked
– Lex Moskovski 🔻 (@mskvsk) October 6, 2021
If I were a conspiracy theorist I would think that whales pump BTC to attract the attention of normie retail, trigger a new frenzy, and dump their altcoin bags on them.
But I am not.
– Lex Moskovski 🔻 (@mskvsk) October 6, 2021
In the meantime, expectations regarding the potential approval of BTC ETFs may also help the price increase. Bloomberg analysts are giving a 75% chance to approve BTC futures ETFs this month. As for the more sought-after spot ETFs, the deadline for the final SEC verdict is approaching VanEck’s request – the deadline is 14 November.
The Crypto Fear & Greed Index again advised well
The mood in the market is also changing rapidly according to the Crypto Fear & Greed Index. BTC is already on level of greed (68 points out of 100). Once again, it turned out that when it was in the fear zone of the market (he was still at 24 points last week, which showed extreme fear), it was a good time to invest. On the contrary, when there is extreme greed on the market, a price correction will usually take place in the foreseeable future.
BTC Fear and Greed Index is 68 – Greed
Current price: $ 51,326 pic.twitter.com/6EsSL4c6VV– BTC Fear and Greed Index (@BitcoinFear) October 6, 2021
