Bitcoin Rises to Five-Month High on Seasonal Factors, Soros News

Investors also expect a seasonal rally in Cryptocurrencies this quarter.

The world's largest cryptocurrency by market value rose to $55,499.96, its highest since mid-May. On Tuesday, it surpassed $50,000 for the first time in four weeks, partly due to growing institutional interest.

Bitcoin was last up 6.3% to $54,750.

According to reports on Wednesday, Soros Fund management confirmed at a Bloomberg summit that the fund trades Bitcoin. “We own some coins – not many,” Dawn Fitzpatrick, the fund’s managing director, was quoted as saying.

There are also seasonal factors.

"Bitcoin is performing historically well in October, making the rising... price now almost a self-fulfilling prophecy. I have consistently said since the summer that I expect a new all-time high in October," said Ruud Feltkamp, ​​CEO of cloud-based automated crypto trading bot Cryptohopper.

"And what is the reason for this new pump? I think it is partly due to the market cycle we are in, where the emotional part plays an important role."

Bank of America Corp released its first research report focused on cryptocurrencies and other digital assets on Monday.

US Bancorp announced that it has launched a cryptocurrency custody service for institutional investment managers who have private funds in the United States and the Cayman Islands.

Smaller coins that typically move in line with Bitcoin were also up. Ether rose 2.2% to $3,594 and XRP edged up 0.2% to $1.0865.

Ben McMillan, chief investment officer at IDX Digital Assets, a factor-based crypto index strategy, noted that based on an analysis of on-chain data, he is seeing a steady increase in the number of new Bitcoin addresses after a huge decline. in the first half of the year as well as an increasing number of Bitcoins migrating from the exchange.

Both factors – new addresses and Bitcoin moving away from exchanges – are “structurally bullish signs.”

Still, McMillan said while the structural bull case for Bitcoin is strong, “non-trivial downside risks remain in the near term.”

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(Reporting by Gertrude Chavez-Dreyfuss; Additional reporting by Sruthi Shankar and Susan Mathew in Bengaluru; Editing by Anil D’Silva and Marguerita Choy)