Bitcoin Breaks $50K for First Time in a Month

The gain comes amid a weak start to October for U.S. stocks.

Oct 5, 2021 at 9:59 a.m. UTC
Updated Oct 5, 2021 at 8:05 p.m. UTC

Lyllah Ledesma is a CoinDesk Markets reporter currently based in Europe. She holds bitcoin, ether and small amounts of other crypto assets.

Bitcoin, the largest cryptocurrency by market value, broke above the crucial psychological threshold of $50,000 on Tuesday for the first time since Sept. 7.

“It’s too early to say whether this will turn into a new support level in the short term, but it is clear that the overriding market view is bullish,” said Jason Deane, an analyst at Quantum Economics.

At press time, bitcoin was trading about $50,250, up 5.4% over the last 24 hours.

Given the difficult environment across all other asset classes, bitcoin’s long-term holders are the backbone in this rally above the $50,000 level, said Edward Moya, senior analyst at Oanda, in an interview with CoinDesk.

“If momentum buying continues and the price rallies above $52,000, we could confirm the end of this consolidation pattern,” said Moya. (A consolidation pattern is a pause in a stock’s trend that allows the trend to continue further.)

Wall Street is in for a choppy period of dealing with market risks, such as the prospect of the Federal Reserve tapering its $120 billion-a-month of monetary stimulus, an energy crunch and rising bond yields, according to Moya.

This should only help cryptos over the short term,” he said.

“Bitcoin breaking $50,000 is a confirmation of the bull market being back,” said Lucas Outumuro, head of research at IntoTheBlock.

According to the firm, more than 800,000 BTC were previously acquired around $48,000. Sometimes buyers and sellers will target these entry levels for key trading decisions.

“Such high concentration of volume translates into resistance in price action,” Outumuro said. “Now that we’ve surpassed that level, there doesn’t seem to be meaningful resistance up to $56,000.”

The latest surge in bitcoin appeared to lead a broad rally in cryptocurrency prices. The Ethereum blockchain’s native cryptocurrency, ether, was up 3%, while Polygon’s MATIC rose 4.8% and Binance’s BNB coin gained 4%.

UPDATE (OCT. 5, 10:26 UTC) Adds quote, altcoins, S&P 500′s October performance; updates bitcoin price.


Read more about
The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

CoinDesk - Unknown

Lyllah Ledesma is a CoinDesk Markets reporter currently based in Europe. She holds bitcoin, ether and small amounts of other crypto assets.

CoinDesk - Unknown

Lyllah Ledesma is a CoinDesk Markets reporter currently based in Europe. She holds bitcoin, ether and small amounts of other crypto assets.

Trending

1
CoinDesk - Unknown
Sequoia's Guide to Surviving the 2022 Bear Market

Venture capitalists have gotten increasingly frantic over the last few months.

Venture capitalists have gotten increasingly frantic over the last few months.

CoinDesk - Unknown
2
CoinDesk - Unknown
NFT Art Museums Are a Good Idea

The metaverse turns galleries global, and helps fund the arts. This article is part of “Metaverse Week."

The metaverse turns galleries global, and helps fund the arts. This article is part of “Metaverse Week."

CoinDesk - Unknown
3
CoinDesk - Unknown
How the US Can Establish Itself as a Crypto Leader

Regulators have an opportunity to map out thoughtful, strategic policy on stablecoins and beyond.

Regulators have an opportunity to map out thoughtful, strategic policy on stablecoins and beyond.

CoinDesk - Unknown
4
CoinDesk - Unknown
No, the UK Is Not Going to Make USDC and USDT Legal Tender

For “legalize” read “regulate.”

For “legalize” read “regulate.”

CoinDesk - Unknown