Bitcoin surpasses $50K as trading volumes soar
09:00, 5 October 2021
Bitcoin climbed 5.5% to break the $50,000 trading mark on Tuesday morning – a level it has not reached since mid-August.
The original cryptocurrency was trading at $50,200 by midday in London, and the other major cryptocurrencies were also seeing gains. Ethereum rose 3.48% to $3,455 and Ripple was up 3.03% to $2.24.
Regulation effects
Bitcoin has been moving between $40,000 and $50,000 in the last month. Last week, all crypto market watchers’ eyes were on the US Securities and Exchange Commission, as the regulator was set to rule on applications for the first ever crypto exchange-traded fund. The event ended up being less market-moving than expected, as SEC postponed its ruling yet again.
A survey by digital asset management firm CoinShares of fund managers who oversee a total of $400bn showed that regulatory concerns were the main reason for not investing in crypto.
“Our analysis has highlighted a close link between government regulation and volatility in digital asset prices,” the survey said.
It added: “We believe this is understandable given we are witnessing the birth of a new asset class, with regulators only just beginning to work out ways to regulate.”
While bitcoin conquered a psychological milestone today, prompting bulls to predict further growth, the majority of institutional investors (42%) tipped Ethereum as the cryptocurrency with the most appealing growth outlook, with only 18% picking bitcoin.
What is your sentiment on ETH/BTC?
Volumes up in September
Data published on Tuesday by MejoresApuestas.com showed that US dollar-linked stablecoin Tether was the most traded digital asset in September, with monthly trading volumes of $2.8trn – up from $1.8trn in August.
Bitcoin was the second most traded crypto, with volumes of almost $1.2trn, up 53% from August. Ethereum witnessed trading volumes of $750bn, up from $393bn a month before.
Read more: Bitcoin price prediction: will it surge to 0k?
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