Bitcoin gains strength: it surpassed USD 50,000 again and advances 20% in a week

The cryptocurrency leads the gains in all assets in the sector. Advances hand in hand with the greatest interest of institutional investors and the commitment to the approval of the first crypto fund in the US

Bitcoin, the world’s largest cryptocurrency by market value, surpassed the $ 50,000 mark on Tuesday for the first time in four weeks, adding to a string of gains for crypto assets that have accumulated since early October.. In 7 days the advance was 20% and, so far this year, it exceeds 50%.

The cryptocurrency fell below that level on September 7 amid a broader sale of shares of cryptocurrency and blockchain-related companies that took place during that wheel. It continued to decline in September, hitting a low of $ 40,596 on September 21.

Since then, they were all up. On Tuesday, Bitcoin rose as much as 2.35% to hit $ 50,398.10.

“It is too early to say if this will turn into a new level of support in the short term, but it is clear that the prevailing view of the market is bullish,” said Jason Deane , an analyst at Quantum Economics quoted by Coindesk.

Bitcoin’s latest rally appears to be leading a broad rally in cryptocurrency prices. The Ethereum blockchain’s native cryptocurrency, Ether, was up 3%, while Polygon’s MATIC was up 4.8% and Binance’s BNB coin gained 4%.

Cryptocurrency investment products and funds posted inflows for the seventh consecutive week as institutional investors were more sympathetic to regulators’ remarks, data from digital asset manager CoinShares showed on Monday.

In the week of September 27 to October 1, Bitcoin leads the capital inflows of large investors in digital assets for the second week in a row. This is reflected in the manager’s weekly report on digital asset fund flows, which reflects that these generated inflows of USD 68.7 million during that period, representing a 36% increase in exposure week by week.

“It is too early to say if this will turn into a new level of support in the short term, but it is clear that the prevailing view of the market is bullish” (Deane)

Although Bitcoin-related products have dominated entries in digital asset products for two consecutive weeks, this bullish turn follows a record streak of exits that continued for eight consecutive weeks through early September.

Total inflows of crypto products were $ 90 million for the week, marking the seventh consecutive week of inflows, as institutional investors continue to increase their exposure to digital assets. All in all, CoinShares highlights that last week’s trading volume of $ 2.4 billion remains low compared to the $ 8.4 billion of institutional cryptocurrency products traded weekly during the peak of the 2021 bull cycle, which took place. in mid-May.

The key variable that investors are looking at with the illusion that it will transform into an even bigger shot could come from the hand of the US Securities Market Commission (SEC, for its acronym in English), which is expected to approve a Bitcoin ETF, which could happen in a matter of weeks.

Although the body’s chairman Gary Gensler last week reiterated his preference for a futures-backed Bitcoin ETF (rather than a spot ETF with Bitcoin), some analysts predict that the regulator’s approval could trigger a rebound. of cryptocurrencies at the end of the year with expectations of a rise that, in some cases, is estimated to reach USD 100,000 per unit.