The cryptocurrency market continues to perform well in the first trading days of October 2021, Bitcoin has stabilized above $45000 support, and this situation also supports the price of other cryptocurrencies. According to the September edition of CryptoCompare’s Digital Asset Management Review, institutional investors’ interest in cryptocurrencies is increasing, while Allied Market Research recently reported that the global cryptocurrency market would hit $4.94 billion by 2030.
Another positive information is that crypto-analysis firm Chainanalysis reported that global crypto adoption among retail investors had soared more than 800% since the beginning of the year: led by India, Pakistan, and Ukraine. Meltem Demirors, Chief Strategy Officer (CSO) at digital asset investment firm CoinShares said that Bitcoin could hit $100000 by the end of the year, which would certainly give the boost to other cryptocurrencies.
On the other side, International Monetary Fund (IMF) warned on Friday that cryptocurrencies pose new challenges to financial stability. The extreme rise in market capitalization is largely attributed to increased investor interest in the crypto industry and IMF requires urgent cross-border cooperation to avert regulatory risks.
Time to invest in cryptocurrencies?
Historically, October has been a positive month for cryptocurrencies as six of the last ten have been impressive for Bitcoin and other major cryptocurrencies. Bitcoin advanced on Friday to its highest level since mid-September, supported by positive investors sentiment as well as supportive comments from U.S. Federal Reserve Chairman Jerome Powell.
Jerome Powell said on Thursday in testimony to Congress that the Fed had no intention of banning cryptocurrencies which boosted optimism around the cryptocurrency market. Ulrik K.Lykke, founder of crypto assets hedge fund ARK36 said that October is typically a bullish month for cryptocurrencies. Ulrik K.Lykke added:
The digital asset market is benefiting both from the seasonality effect as well as generally positive market fundamentals. The last quarter of the year has often seen strong performances, and it is possible that we will see new all-time highs.
If you decide to invest in cryptocurrencies in October 2021, you should have Bitcoin on your “watch list” because the prices of other cryptos are usually in correlation. Bitcoin is trading above the $47000 level this Sunday, indicating that the price could advance even more. If the price breaks the strong resistance level that stands at $50000, the next target could be at $53000.
Still, if the price of Bitcoin falls below $40000 support, it would be a strong “sell” signal which would add further pressure to the whole cryptocurrency market.
Historically, October has been a positive month for cryptocurrencies, and according to CryptoCompare’s Digital Asset Management review, institutional investors’ interest in cryptocurrencies is increasing. In testimony to Congress, U.S. Federal Reserve Chairman Jerome Powell said on Thursday that the Fed had no intention of banning cryptocurrencies, which boosted optimism around the cryptocurrency market.
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