Bitcoin price continues to hit new highs near the $ 58,000 threshold

The not-so-optimistic economic outlook has led many investors to invest money in Bitcoin. On October 12, Bitcoin price approached the USD 58,000 / dong threshold for the first time in more than 5 months.

Bitcoin price has continued to maintain strong upward momentum over the past few days. According to CoinMarketCap data from October 12th (Vietnam time), BTC – the largest cryptocurrency in the world – is being traded for too $ 57,600/ dong, 1.59% more than the day before.

Bitcoin has returned to this price level for the first time since May 8th. As such, the cryptocurrency has hit a record high in over 5 months.

Bitcoin’s market capitalization reached 1,084 Billion USD. Compared to the milestone at the beginning of the year, BTC has increased in price by more than 96%. In the last 7 days alone, the Bitcoin price has increased by 16.6%.

The BTC price rose sharply, although other cryptocurrencies rose only slightly, even collapsed. Ether – the world’s second largest cryptocurrency – fell 0.32% from the previous day 3,500 USD/Copper. However, within the last week, the coin was still posting a 3.44% gain.

BTC price approached the USD 58,000 / dong threshold for the first time in more than 5 months. Bitcoin’s share of the cryptocurrency market has increased to 46.67%. Photo: CoinMarketCap.

Strong momentum

Meanwhile, Cardano and Binance Coin – the third and fifth largest coins – saw price drops 4.27% and 5.42%, respectively, from a week earlier. As a result, Bitcoin’s share of the cryptocurrency market has risen to 46.67%.

“BTC price resumed its upward momentum earlier this week, reaching its highest level since May and showing no signs of stopping,” commented financial expert Craig Erlam (based in London).

“Bitcoin’s rally may slow down a bit, but it’s still not enough to keep the coin from reaching the threshold 60,000 won USD/ dong, “he claimed.” Cryptocurrencies are also in a healthy position to move higher, “added the expert.

Bitcoin has returned to the price of 57,000 USD / dong for the first time since the sharp slump in mid-May. Photo: CoinMarketCap.

Financial expert Edward Moya of consulting firm Oanda (based in the US) believes Bitcoin has entered the “overbought zone”. “But crypto advocates are still pushing prices up,” he commented.

According to him, Bitcoin is benefiting from the massive inflow of money into the crypto space. “Line Billion USD is raised for various funds, the traditional financial world is looking to adopt blockchain technology, ”argued Mr. Moya.

In addition, according to the Oanda expert, another important driver of Bitcoin is the less optimistic forecasts for economic growth. This could lead governments and central banks to postpone rolling back stimulus packages during the pandemic.

The economic outlook is bleak

“The global energy crisis has resulted in blackouts and food shortages. Worsening economic conditions will force many investors to look for assets against the risk of currency depreciation,” said Moya.

Due to the effects of the delta mutation, many countries in Asia are still in a state of lockdown or social distancing to prevent the virus from spreading. The “bottlenecks” in the global supply chain are expected to restrict production over the next year, damage many sectors and drive prices up.

The Kiel Institute for the World Economy lowered its forecast for global economic growth in 2021 from 6.7% to 5.9%, among other things due to problems in the supply chain.

When the economic outlook weakens and the risk of inflation increases, investors tend to put money in safe investments.

Bitcoin is now considered a form of “digital gold”. On the other hand, Bitcoin and many other assets will benefit if governments and central banks continue to maintain stimulus packages and fiscal easing.

Large-scale stimulus packages from countries around the world and the easing of fiscal conditions fueled the galloping rally of gold, cryptocurrencies and world exchanges at the start of the pandemic.

“Given the severe financial crisis in Lebanon, many investors will be putting money into Bitcoin,” added Moya.

According to the expert, Bitcoin may need a new catalyst to reach the threshold 60,000 won USD/Copper. “However, if this coin doesn’t take long to hit the mark 60,000 won USD/ dong, Bitcoin will easily set a new record, “he predicted.

In the same vein, Katie Stockton – founder and manager of FairLead Strategies – believes cryptocurrencies could soon return to record highs. 65,000 won USD/ dong in April.

Thao Phuong

ZING