Bitcoin, the pioneer of cryptocurrencies, is on the rise, hitting a peak of $30,900 on Monday morning, marking its highest value since July 15, as reported by Coinmarketcap.
The surge above $30,000 comes on the heels of last week’s rally, which saw the cryptocurrency climb by 10%, albeit amid significant volatility within the digital asset space.
Notably, Bitcoin has seen a 14% increase this month, outperforming gold, which experienced a more modest 6.7% gain.
However, it’s worth noting that gold had its rally one week before Bitcoin. The tensions between Israel and Hamas, combined with ongoing speculations about the Fed’s tightening cycle, led to speculations about the arrival of an inflationary era, which benefited the precious metal.
Bitcoin remains an attractive asset, particularly due to its portability, protection against inflation, and independence from government policies.
The growing optimism around the potential approval of a Bitcoin ETF (Exchange-Traded Fund) by the U.S. Securities and Exchange Commission (SEC) has also contributed to this recent rally.
Larry Fink, CEO of BlackRock, the world’s largest asset management firm, with over $9.4 trillion in assets under management, praised the Bitcoin network, stating that the recent rally in October goes “beyond rumor.”
He highlighted the pent-up interest in cryptocurrencies and a flight to quality as factors driving the rally.
There is increasing confidence among analysts that the SEC will greenlight a Bitcoin ETF soon, which would enhance Bitcoin’s credibility and likely lead to greater institutional and mainstream adoption.
Data from Glassnode indicates that market participants are moving their stablecoins into Bitcoin this week.
Standard Chartered predicts that Bitcoin will reach $50,000 by year-end. Geoff Kendrick, the global head of research and chief strategist at Standard Chartered, pointed to increasing mining profits, reducing the need for miners to sell BTC, which could lead to decreased supply and increased demand.
Despite the optimism, Bitcoin faces challenges as it attempts to break through channel resistance in the $30,000 to $33,000 range.
Analysts, including cryptocurrency trader Nicholas Merten, believe that overcoming this resistance channel is a significant hurdle that could lead to a potential downward third wave if not successfully breached.