• Its value has increased by 6.5 million percent since its initial price was in USD.
• Bitcoin miners have opted to accumulate Bitcoin rather than sell it.
• Crypto fund investments totalling more than $90 millions represent new money.
• Bitcoin passed the psychological threshold of $50,000.

After Bitcoin’s retracement by more than half of its original $64,000 high, confidence in the market has begun to rise. Chinese market dominance and hegemony have begun to retrace after Bitcoin was made illegal. Bitcoin’s market sentiment flipped to bullish after a month of negative appearances, reclaiming the $50,000 mark on October 5th.

Bulls Before Bears

Bitcoin, the largest cryptocurrency according to market capitalization has a tendency drop and then show an unexpected side. However, Bitcoin’s uprise was catalyzed mostly by positive reinforcements from U.S. regulatory bodies, including the SEC.

Although the SEC’s Chairman, Gary Gensler, referred to crypto as a wild west, drawing comparisons to the early days of capitalism, his latest comments rippled the market. Gensler stated in an interview with the Washington Post that the U.S. doesn’t intend to ban cryptocurrency in the same way as China did to decentralization. In turn, the SEC notes that tokens do meet several criteria of being investment contracts or bills, and the SEC is seeking to bring crypto “within the investor protection remit.”

Tyler Durden noted that the SEC’s more positive attitude towards crypto helped funnel more positive momentum for Bitcoin. In addition, the current reverberations from the U.S. government are in antithesis with China, as it helps to stabilize Bitcoin’s volatility and increase investor trust.

Flipside

• The IMF doesn’t consider Bitcoin to be a form of payment or digital money.
• Bitcoin volatility can lead to both positive outcomes and negative ones.
• Negative financial outcomes, like the Evergrande financial crisis, can cause market anxiety.

Investor’s Gain Momentum

Record outflows were recorded in the crypto market during June and July, as investors looked for safer financial havens. They repurposed Bitcoin to hedge against inflation. Will Clemente noted that miners have stopped selling BTC after a “few weeks of selling” and started accumulating again. Riot Blockchain, NASDAQ:), also produced a total 406 BTC but only sold one. Pomp highlights that “economic incentives drive further decentralization,” but that doesn’t always equate to BTC selling.

CoinShares data shows that cryptocurrency inflows are positive for more than seven weeks. The record-breaking $90 million was recorded in the September last week. The report also states that Bitcoin inflows total $68.7million, which is indicative of the market growth and perception of positivity.

What’s more, the U.S. Bank announced it will be launching a custody service for a fund manager which seeks to invest in “digital gold.” The service will aid investors in securing their private keys and assets for digital assets, including Bitcoin, , and , denoting that institutional interest is expected to increase as Bitcoin pushes on into a new bullish cycle.

Bitcoin’s credibility is a balance between group belief and government narratives. Bitcoin’s value has grown by 6.9 billion percent since it was first paired with the USD in 2009 and continues to generate financial headlines despite negative economic downturns. Crypto Twitter (NYSE:) and Bitcoin maximalists have always been confident in Bitcoin’s status. With each financial epoch, wave, and retail interest that comes along, Bitcoin gains market exposure. Some even consider integration to be a legal financial tool in El Salvador.

What are the reasons to care?

Bitcoin’s volatility is a trademark in the new financial market which will not be going anywhere. To predict market changes, investors should look at market sentiment, as well as institutional interests, such as capital inflows/outflows.

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