Cryptocurrency News

Bitcoin Rallies Above $47,000 as Crypto Market Surpasses $2 Trillion

By October 1, 2021 No Comments

Key takeaways:

  • Weakening US Dollar spurs investors’ interests in the cryptocurrency markets
  • Prominent analysts, who correctly predicted the end of month performance of BTC for two straight months believes we will see a $135K BTC by the end of 2021
  • Digital assets are up big over the last 24 hours, posting high single-digit gains

Bullish trading action that has taken place over the last couple of hours has led to the cryptocurrency market gaining almost $200 billion. Virtually all coins are exchanging hands in the green zone with most of them showing mid- to high-single-digit gains.

Bitcoin rallies above $47,000 following latest US labor data

Following a mostly sideways trading action over the past seven days, Bitcoin has successfully broken through the $45,000 barrier. The bullish momentum carried the price of the world’s largest crypto to almost $48,000, reaching its highest point since September 20, when the selloff of Chinese real estate giant Evergrande had plunged the price of cryptocurrencies across the board.

Bitcoin saw a sharp increase in value, growing by nearly 10% in the last 24 hours.

Some analysts are attributing the recent uptick to the inverse correlation between the strength of USD and Bitcoin. The strength of USD in comparison to six other fiat currencies, measured by the so-called U.S. Dollar Index (DXY), has reached its highest level since September 28, 2020. Following the latest labor data, however, which showed that the number of weekly jobless claims surpassed analysts’ predictions by roughly 10%, the DXY has made a small retraction. After the news broke, BTC rallied to a two-week high. 

Prominent Dutch financial investor with 25-year worth of experience in financial markets, which goes by the name of PlanB on Twitter, believes BTC could reach as high as $135K by the end of the year. He correctly predicted the closing price of BTC in August as well as in September using a self-made stock-to-flow model.

As is often the case, when BTC gets going, other crypto-assets follow in its footsteps. At the moment of this writing, only 4 out of the top 100 largest projects by market cap are trading in the red zone.

The second-largest cryptocurrency, Ethereum has managed to gain almost 8% in the last 24 hours and is now trading firmly above the $3,000 mark. Binance Coin, Solana, Polkadot, and Uniswap are up roughly 10%, at the time of this writing.

The big gains of countless cryptocurrencies are reflected in the overall performance of the market. Over the course of the last 24 hours, the cumulative value of digital assets has grown by 7.3%, meaning that the market capitalization grew by $170 billion.

The crypto market reaches its highest point in the last seven days – $2.086 trillion.

It will be exciting to observe where we go from here. If PlanB’s predictions continue to be correct, we could witness an explosive end to the year, with Bitcoin doubling its previous all-time high, and the total market cap surpassing $4 trillion USD. As of right now, BTC is just $1,500 away from reaching the highest value in the last 20-week period.