Bitcoin Price Blows Past $55,000, Reaches a Five-Month High

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Created by TradeOr

3rd Party Analysis 07 Oct 2021

Key Takeaways:

  • The price of bitcoin jumped 10% on Thursday, hitting a 5-month high at $55,700
  • The digital currency is now about 17% away from its all-time high of $64,800 set in April

What’s Today’s News in Crypto?

Bitcoin rallied on Thursday to break above the $55,000 milestone as the October sprint is going at full steam ahead. The original cryptocurrency surged 10% yesterday, bringing its total gains for the first six days of October to 28%. Moreover, from Sep. 30, the orange coin has added over 35% to its market price.

In more detail, the strong upside swing arrives as lawmakers in Washington are looking for ways to introduce regulations. That being said, regulatory frameworks over crypto are expected to preserve the stellar performance of the crypto market.

On Tuesday, Gary Gensler, Chairman of the Securities and Exchange Commission, appeared before the US Senate. His remarks largely soothed crypto players and comforted institutional investors. In his comments, Mr. Gensler said the SEC has no plans to ban the fast-developing cryptocurrency industry.

His words echoed a speech from the US Federal Reserve Chairman, Jerome Powell. The Fed Chair said last week the US central bank does not intend to put a ban over bitcoin and digital currencies. The stream of positive news from policymakers has boosted hopes institutions will soon be able to join the crypto revolution.

What’s the Price of Bitcoin?

The price of bitcoin accelerated on Wednesday and early Thursday to reach a five-month high of $55,700 per token. The sharp jump started on Wednesday afternoon when bitcoin gained 5% in less than 10 minutes. Before that, however, a gradual climb was observed in the price of the largest cryptocurrency.

Meanwhile, investors are ready to splash out money into crypto as they expect the first US Bitcoin ETF to arrive this month. An ETF, short for exchange-traded fund, focused on bitcoin would enable institutional investors to get a piece of the crypto pie.

How to Buy Bitcoin?

If you are looking to buy bitcoin, you can read more on how to do so by heading over to our Buy Bitcoin guide. It’s important to know that you don’t need to purchase a whole bitcoin. Instead, you can purchase only a fraction of it and still experience the thrill of volatility inherent to cryptos.

What is the Future of Cryptocurrency?

Now that US lawmakers have signaled, they are ready to work with crypto players for regulations, prospects have largely improved. The outlook for cryptocurrencies will widely depend on the regulatory framework that will make crypto trading part of traditional finance. On that note, crypto circles believe government institutions in the largest economies will be open to adopt the crypto industry.