The bitcoin and cryptocurrency spaces are really starting to pick up speed. At the time of writing, the world’s primary digital currency by market cap is trading for just over $54,000, which is about $4,000 higher than where it was just a few weeks ago.
Bitcoin Continues to Make Its Mark On the World
The currency typically experiences bearish activity in September. In 2020, for example, the currency fell to about $10,000 per unit from $12,000 during the previous month. However, in October of that year, the asset rose to about $13,000 per unit.
Now, it looks like the pattern is repeating. The currency was initially trading for about $42,000 in late September following news that China was eliminating the legality of crypto transactions. The nation decided that all transactions and related activities would not be permitted within its borders, and thus anyone that engaged in crypto trades would be punished.
The currency was trading for around $44,000 initially, though the news caused the asset to drop by $2,000. This month, there are many new developments surrounding bitcoin, including a new document published by Bank of America which refers to the bitcoin world as something “too large to ignore.”
Over the past few months, the valuation of the crypto industry has jumped from around $1.8 trillion to about $2.3 trillion. Alkesh Shah – Bank of America’s head of cryptocurrency and digital asset strategy – stated in an interview:
It’s difficult to overstate how transformative blockchain technology, digital assets, and the thousands of decentralized apps that have yet to be created could potentially be. Bitcoin is important, but the digital asset ecosystem is so much more.
One of the big things that has allowed the crypto market to explode in the past several months is the expansion of the NFT (non-fungible token) market. In addition, decentralized finance (defi) has also greatly contributed to the growth of the crypto market. At press time, the space has expanded to about $10.7 billion, meaning defi has grown by eight times what it was during the previous quarter.
There are also several banks and standard financial firms out there that are beginning to warm up to cryptocurrencies like bitcoin. U.S. Bank, for example, is the fifth largest financial enterprise in America. It recently unveiled plans to begin a crypto custody program that would allow institutional clients to store their private keys with the bank and thus have access to assorted digital currencies.
A New All-Time High Coming Soon?
Pankaj Balani – the chief executive at the Delta Exchange – believes that this is likely to cause BTC to reach a new high rather soon. He states:
We expect to see a fresh all-time high in the coming weeks. We also expect bitcoin to outperform altcoins and the money to rotate into bitcoin from alts going forward.
Source: Live Bitcoin News