Bullish sentiment returns to largest cryptocurrency, up 25% already this month.
Bitcoin, the world’s largest cryptocurrency, surged past $54,000 to the highest in almost five months as bullishness returns to the market following the prior months’ slump.
At press time, bitcoin was trading at $54,220, up 8.7% over the last 24 hours. It was the highest price since May 12, before a crackdown by China on its domestic cryptocurrency and other negative news helped push the price below $30,000. In February, the bitcoin price had hit an all-time high close to $65,000.
The latest rally has pushed bitcoin’s market capitalization back up above $1 trillion, according to data from Messari. Bitcoin’s move to a five month high comes as no surprise to those who have been following this asset closely over the last few months,” said Jason Deane, analyst at Quantum Economics.
Markets often move on momentum and sentiment – especially after periods where it has been trading for a while in a price range, according to Deane. In June and July, bitcoin mostly traded in between $30,000 and $40,000, and then in August and September, the price settled into a range from $40,000 to $50,000.
Sentiment has significantly improved over the first week of October, signaling a shift away from the previous few months’ market panic. Bitcoin’s jump of more than $10,000 just since Oct. 1 works out to a gain of 25% already this month.