The cryptocurrency market continues to perform well in the first trading days of October 2021, Bitcoin has stabilized above the $ 45,000 support, and this is supporting the price of other cryptocurrencies as well. According to the September edition of CryptoCompare’s Digital Asset Management Review, institutional investor interest in cryptocurrencies is on the rise, while Allied Market Research recently reported that the global cryptocurrency market would hit 4.94. billion dollars by 2030.
Another positive news is that crypto analysis firm Chainanalysis reported that global crypto adoption among retail investors has climbed over 800% since the start of the year: led by India, Pakistan and Ukraine. Meltem Demirors, chief strategy officer (CSO) at digital asset investment firm CoinShares, said Bitcoin could hit $ 100,000 by the end of the year, which would certainly give others a boost. cryptocurrencies.
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On the other hand, the International Monetary Fund (IMF) warned on Friday that cryptocurrencies pose new challenges to financial stability. The extreme increase in market capitalization is largely attributed to increased investor interest in the crypto industry and the IMF needs urgent cross-border cooperation to avoid regulatory risks.
Is it time to invest in cryptocurrencies?
Historically, October has been a positive month for cryptocurrencies as six of the last ten have been impressive for Bitcoin and other major cryptocurrencies. Bitcoin rose to its highest level since mid-September on Friday, supported by positive investor sentiment as well as favorable comments from US Federal Reserve Chairman Jerome Powell.
Jerome Powell said in testimony to Congress on Thursday that the Fed has no plans to ban cryptocurrencies, which has heightened optimism around the cryptocurrency market. Ulrik K. Lykke, founder of crypto asset hedge fund ARK36, said October is generally a bullish month for cryptocurrencies. Ulrik K. Lykke added:
The digital asset market benefits from both seasonality and generally positive market fundamentals. The last quarter of the year has often been a strong performer, and we may see new all-time highs.
If you decide to invest in cryptocurrencies in October 2021, you should have Bitcoin on your “watch list” because the prices of other cryptos are generally correlated. Bitcoin is trading above the $ 47,000 level on Sunday, indicating that the price could rise further. If the price breaks the high resistance level of $ 50,000, the next target could be $ 53,000.
Still, if the price of Bitcoin falls below $ 40,000, that would be a strong “sell” signal that would add further pressure to the overall cryptocurrency market.
Historically, October has been a positive month for cryptocurrencies, and according to CryptoCompare’s Digital Asset Management review, institutional investor interest in cryptocurrencies is increasing. In testimony to Congress, U.S. Federal Reserve Chairman Jerome Powell said on Thursday that the Fed has no plans to ban cryptocurrencies, which has heightened optimism around the cryptocurrency market.
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