Bitcoin recorded a nearly five-month high above $55,000 on the 6th of October as it is continuing to gather gains from the previous day.
Crypto services firm Coinbase Global Inc (NASDAQ: COIN) gained over 4% in its shares on the 6th of October, while Bitcoin also reached $55,000.Coinbase shares increased in reaction to a statement by Goldman Sachs (NYSE: GS), emphasizing its buy rating on COIN. Goldman Sachs also added that it expects a top-line beat when it declares its earnings reports in November.
Currently, Coinbase stock is up 0.52% to $251.69 at after-hours trading. COIN has lost 0.63% in the last three months and declined further by 3.03% over the past month. However, Coinbase shares had surged more than 11% in the last five days.
Coinbase Stock Booster: Bitcoin Reaches Nearly 5-Months High at $55,000
Bitcoin recorded a nearly five-month high above $55,000 on the 6th of October as it is continuing to gather gains from the previous day. The top crypto asset jumped 7.6% to $54,973. At the same time, ETH also grew 2.8% to $3,575. In addition. Bitcoin traded as high as $55,499 earlier in the session, having surged 13% this week. Since the beginning of the year, the largest cryptocurrency by market cap has added about 87%.
At press time, Bitcoin is still trading around $55,000 as it is currently up 6.41% to $54,777.23.
BTC began to increase amid a series of encouraging developments in Washington, D.C. This gave some kind of comfort to institutional investors. Notably, there has been an increasing number of institutional investors jumping into Bitcoin and other crypto-assets.
Matt Hougan, Bitwise Asset Management chief investment officer, commented:
“Regulatory uncertainty is what’s still keeping investors out of the market and every time we get a step closer to regulatory clarity, you see this kind of reaction. It’s the primary driver of next great bull market in crypto.”
Bitwise Asset Management conducted a survey to inquire the reason stopping financial advisors from making allocations to crypto. Results of the survey showed that regulatory uncertainty is the main factor preventing financial advisors from making allocations to cryptocurrencies. According to Hougan, the result has been the same for the last three consecutive years.
US Regulators Revealed No Plans to Ban Crypto
Unlike China, it appears the US has no plans to ban cryptocurrency. The chairman of the Securities and Exchange Commission (SEC), Gary Gensler, revealed in a hearing of the House Financial Services Committee that he has no intention to ban crypto. He added that it is up to Congress to decide if there should be a crypto ban. Gensler’s recent declaration compliments a comment by Federal Reserve chairman Jerome Powell who also noted that he has no plans to ban Bitcoin and altcoins.
The chief investment officer at Bitwise continued:
“You had every major regulatory agency in the US this summer declaring that they needed to create a new regulatory regime around crypto. That created a great deal of uncertainty in investors minds, they were hesitant to allocate not knowing what the range of possibilities would be. The reason we’re rallying this week is that most extreme left tail of following the path of China was wiped from the market by both Jerome Powell and Gary Gensler.”
With Bitcoin crossing the $55,000 mark in months, hopes are high on if the crypto asset will continue to grow in value.
Ibukun is a crypto/finance writer interested in passing relevant information, using non-complex words to reach all kinds of audience. Apart from writing, she likes to see movies, cook, and explore restaurants in the city of Lagos, where she resides.
