Bitcoin hits new record high in broad surge for crypto assets
Market snapshot – Bitcoin scales new peaks
It has been a stellar week for bitcoin, which has gained over 10% in a move to a new record high above $125,000. Ether has enjoyed a similar bounce, recouping the losses of mid-September. The moves come as gold continues its surge, suggesting that investors around the globe continue to look for diversification, though with stocks at record highs too there looks to be plenty of liquidity to go around.
In the news – Bitcoin supply hits six-year lows
News that the level of bitcoin held on exchanges has dropped to a multi-year low is likely to cause the surge in the price to intensify. The trend has been developing for some time, but with institutional demand on the up and more individual investors holding in private wallets, liquidity may well continue to decline. This could signal more dramatic price movements in both directions, within the context of an overall uptrend.
What we’re watching – Earnings season and Powell speech
Markets continue to discount the US government shutdown, with little impact on investors from the shuttering of many federal services. A quieter week lies ahead on the economic front, though a speech by Fed chairman Jerome Powell might provide some volatility. Elsewhere US earnings season looms large, though expectations of more solid earnings growth should support the broader risk-on atmosphere, a positive for both stocks and crypto assets.
Author
