The world’s leading cryptocurrency is trading above $13K after a $1,000 intraday candle sent it to a new 2020 high a few days ago. The BTC/USD pair soared to $13,250 on Wednesday but failed to set a new higher high over its 2019 peak.
At publication time, the top-ranked crypto is up 2.6% to change hands at $13,126, meaning that BTC is only a few hundred dollars away from setting a new all-time high.
BTCUSD Chart by TradingView
Crypto-asset lender Nexo explained why BTC shot up by over $1,500 to set a new monthly high, a move that caught many traders off guard. In their report, Nexo suggested that several factors played a part in the surge higher, including news that PayPal would start supporting crypto.
Additionally, more institutional capital continued to flood into Bitcoin markets after the U.K. FinTech startup Mode announced it would deploy part of its cash reserves into Bitcoin.
BTC is just over one week away from the October monthly close, and many traders are now watching to see if the coin can close over $13,950. Such an impressive rally over the next week would confirm the new bull market breakout.
JP Morgan Analyst: BTC Can Compete More Intensely With Gold
JP Morgan’s analyst Nikolaos Panigirtzoglou recently shared a bullish view of BTC’s prospects, arguing that the asset would soon mature to compete more intensely with gold.
The analyst compared BTC’s market cap with that of gold funded ETFs and noted that even a small crowding out of gold by investors would be positive for BTC in the long term.
Panigirtzoglou sees potential for crypto to evolve into more than just a store of value and gain more use cases as a means of settlement.
The analyst sees drivers of growth in the crypto market consisting of institutional investors who use BTC as a hedge against inflation. Another potential driver of growth are millennials, who prefer fintech and see the drawbacks of the current legacy financial system.
ETH On-Chain Trends Are Bullish
Ethereum, the world’s second-largest cryptocurrency, has registered a strong rally over the past few days, spurred on by Bitcoin’s move higher.
The ETHUSD pair has gained over 10% in the past week. It has climbed from the $370 zone to hit $413 as of this article’s writing.
ETHUSD Chart by TradingView
According to Santiment, a blockchain analytics company, the ETH price should continue soaring higher and surpass $420 in the days and weeks ahead.
The firm noted in a tweet that several key fundamental and on-chain indicators favor a bull trend:
“The good news is that miners aren’t selling, and there is a big increase in new $ETH addresses being created, and pre-existing addresses have shown an increase in activity,” Santiment explained.