Bitcoin extended its two-week rally Monday, climbing to the highest level since early May. The cryptocurrency last traded more than 3% higher at $57,530.81 after hitting as high as $57,740.82.
Ben McMillan, chief investment officer at the quantitative index fund manager IDX, attributed the jump to increasing concerns about inflation being more than transitory as well as trading data that looks increasingly positive for the bitcoin price.
“We’re looking at food prices that are at a 10-year peak, oil topping $80 for the first time in five or six years, and that’s really hitting consumers in the pocketbook . A lot of investors are starting to look back to the original appeal of bitcoin as a store of value, as something that can’t be weighed by any central bank.” Ben McMillan, chief investment officer at the quantitative index fund manager IDX
The comeback a gain of another 12% would take it back to its all-time high of about $65,000 this comes amid increasing hopes and expectations that a bitcoin futures ETF could be approved soon. That, along with recent comments from the heads of the Federal Reserve and Securities and Exchange Commission, who said they have no intention of banning bitcoin, seemed to embolden investors, Ned Davis Research noted.
The options market is placing a 20% probability on bitcoin ending the month at a new all-time high above $65,000, according to data provided by Skew. BTC is currently about 10% below the all-time high of $64,863 reached on April 14.
Analysts expect further upside due to the resurgence of buying activity and seasonal strength in the fourth quarter.
“Today’s leg higher, after a dull weekend session, keeps the bullish technical pattern of higher lows and higher highs in place, pushing BTC toward the double top around $59,580 made in May,” Nick Cawley, strategist at DailyFX.