Bitcoin hits highest since May, is now up 30% in October

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Bitcoin topped $ 57,000 on Monday morning, extending its two-week rally.

The cryptocurrency gained more than 3% on Monday to hit $ 57,597.60, the highest level since early May, according to Coin Metrics. Ether added nearly 2% to $ 3,599.22.

The return, an additional 12% gain, would take it back to its all-time high of around $ 65,000, which came amid rising hopes and expectations that a bitcoin futures ETF may soon be approved, as well as recent comments from heads of the Federal Reserve and Securities and Exchange Commission, who said they had no intention of banning bitcoin, which seemed to “embolden” investors, Ned Davis Research noted.

NDR’s Pat Tschosik noted that the one-year correlation between bitcoin and gold has dropped to the point of turning negative.

“Bitcoin could be seen as the preferred inflation hedge if the dollar and real rates rise,” he told CNBC.

Cryptocurrency is now up 31% for the month and 98% for the year. Many expect this rally to be the gateway to the next historic high. Although Ned Davis notes that bitcoin tends to have a correction every 40 days, on average.

The latest rally “follows a break above resistance in early September, which was targeting the all-time high, so we would view any resulting consolidation as temporary,” said Katie Stockton of Fairlead Strategies. “For those looking to increase their exposure, the implications would be to wait a few weeks, noting that there is room for the initial support defined by the cloud model, currently close to $ 47,000 to $ 48,000. “

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