The cryptocurrency market continues to perform well in the first trading days of October 2021, Bitcoin has stabilized above the support of $ 45,000, and this situation also supports the price of other cryptocurrencies. According to the September issue of CryptoCompare’s Digital Asset Management Review, institutional investor interest in cryptocurrencies is increasing, while Allied Market Research recently reported that the global cryptocurrency market would reach $ 4.94 billion by 2030.
Another positive piece of information is that cryptanalysis firm Chainanalysis reported that global crypto adoption among retail investors has soared more than 800% since the beginning of the year – led by India, Pakistan, and Ukraine. Meltem Demirors, chief strategy officer (CSO) at digital asset investment firm CoinShares, said that Bitcoin could hit $ 100,000 by the end of the year, which would certainly give other cryptocurrencies a boost.
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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 requires 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 advanced to its highest level since mid-September on Friday, supported by positive investor sentiment as well as supportive comments from US Federal Reserve Chairman Jerome Powell.
Jerome Powell said in congressional testimony Thursday that the Federal Reserve did not intend to ban cryptocurrencies, fueling optimism around the cryptocurrency market. Ulrik K. Lykke, founder of crypto-asset hedge fund ARK36, said that October is typically a bullish month for cryptocurrencies. Ulrik K. Lykke added:
The digital asset market is benefiting from both the seasonality effect and generally positive market fundamentals. The last quarter of the year has often performed well 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 cryptocurrencies are often in correlation. Bitcoin is trading above the $ 47,000 level this Sunday, indicating that the price could move further. If the price breaks the strong resistance level at $ 50,000, the next target could be at $ 53,000.
Still, if the price of Bitcoin falls below the $ 40,000 support, it would be a strong ‘sell’ signal that would add further pressure to the entire 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 before Congress, US Federal Reserve Chairman Jerome Powell said Thursday that the Fed had no intention of banning cryptocurrencies, fueling optimism around the cryptocurrency market.
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