Bitcoin reached a high of $50,400 Tuesday, surpassing a psychological resistance level that traders need to overcome. The last time it traded, it was 2% higher at $50,339.18. It is currently up 14% for October, and has increased 72% year-to-date.
After plummeting in September to the same level, Bitcoin rose above $50,000 on Tuesday. This was due to fears about regulation in China and the U.S.
Bitcoin broke the $50,000 mark for the first time in September when it became legal tender in El Salvador. As investors bet on a fourth quarter run, cryptocurrencies have been rising since Friday. Bitcoin spent most of the third quarter in the low $30,000 area as investors worried about U.S. regulatory policies. However, it did finish strong.
Pervalle Global Capital's chief investment officer, Teddy Vallee, stated that he expected momentum to continue throughout the quarter, provided that there isn't a large equity correction.
He said that long term holders now account for more than 80.5%, which historically has led to large rallies in the six months since then. We expect prices to rise by the year's end if there is no large equity correction. As institutional adoption continues to increase, incremental demand should continue to be strong. This creates a favorable supply/demand dynamic."
This rally follows comments by Jerome Powell, the chairman of the Federal Reserve, last week. He said that he had "no intention" to ban cryptocurrency in the U.S. like China has repeatedly done.
