NEW YORK, Oct.6 (Reuters) – Bitcoin hit its highest level in five months on Wednesday as market sentiment continued to improve in part thanks to the announcement of an investor-controlled hedge fund billionaire George Soros who trades bitcoin.
Investors also expect a seasonal rally in cryptocurrencies this quarter.
The world’s largest cryptocurrency by market value hit $ 55,499.96, its highest level since mid-May. It crossed the $ 50,000 mark for the first time in four weeks on Tuesday against a backdrop, among other things, of growing institutional interest.
Bitcoin was up 6.3% to $ 54,750.
According to information released on Wednesday, the management of the Soros fund confirmed at a Bloomberg summit that the fund trades bitcoin. âWe have a few coins – not a lot,â said Dawn Fitzpatrick, the fund’s managing director.
There are also seasonal factors.
âBitcoin has historically performed well in October, which is almost on the riseâ¦ CEO of cloud-based automated crypto trading bot Cryptohopper.
“So what’s the reason for this new pump? I think part of it is due to the market cycle we’re in, where the emotional part plays a big role.”
Bank of America Corp (BAC.N) released its first research coverage focusing on cryptocurrencies and other digital assets on Monday.
US Bancorp (USB.N) announced the launch of a cryptocurrency custody service for institutional investment managers who have private funds in the United States and the Cayman Islands.
Smaller coins, which typically move based on bitcoin, were also on the rise. Ether rose 2.2% to $ 3,594 and XRP edged up 0.2% to $ 1.0865.
Ben McMillan, chief investment officer at IDX Digital Assets, a factor-based crypto index strategy, noted that based on on-chain data analysis, he sees a steady increase in the number of new bitcoin addresses, after a huge drop. in the first half of the year, as well as a growing number of bitcoins leaving the exchange.
Both factors – the new addresses and bitcoin’s distance from trading – are “structurally bullish indications.”
That said, McMillan said that while the structural bullish case for bitcoin is strong, “there are still significant downside risks in the near term.”
Reporting by Gertrude Chavez-Dreyfuss; Additional reporting by Sruthi Shankar and Susan Mathew in Bengaluru; Editing by Anil D’Silva and Marguerita Choy
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