Bitcoin surged 3% on Monday (Oct. 11) following a two-week price rally that now pegs the cryptocurrency at more than $57,000, the highest level in over five months, according to reports. Ether gained 2%, topping $3,500.
A 12% gain would put Bitcoin at its high of roughly $65,000 and comes as U.S. watchdogs indicated the U.S. has no plans to ban the digital currency as regulations and oversight implications are considered. Ned Davis Research (NDR) said that the news might have given investors a sense of security to move forward with investments.
“Bitcoin could be seen as the preferred inflation hedge if the dollar and real rates are rising,” NDR Senior Portfolio Strategist Pat Tschosik said.
While bitcoin is known to be volatile, overall, the cryptocurrency is up 31% this month and 98% for 2021 so far. Ned Davis said that bitcoin has corrected itself on average every 40 days, and other pundits anticipate that the current rally will lead to the next record high.
Katie Stockton, of Fairlead Strategies, said the current rally “follows a breakout above resistance from early September, which targeted the all-time high, so we would view any resulting consolidation as temporary.”
As the biggest digital asset worldwide, bitcoin has overcome numerous issues that could have set it back for a longer-term, but it’s now turning a corner, with numbers tracking to be its best week since August.
The Biden administration is considering an executive order regarding cryptocurrencies that would be a government-wide approach to digital currency oversight, PYMNTS reported. The proposed plan would ask federal agencies offer recommendations regarding the “relevant areas of crypto.”