The ban on Bitcoin in China, its adoption as legal tender in El Salvador, and the Evergrande crisis contributed to its drop in price. Although the value of the cryptocurrency was not very high, the institutional products linked to it saw some gains.
The price of Bitcoin suffered losses during September, but billions of US dollars returned to the cryptocurrency market at the end of the month. Although last month was negative for the cryptocurrency, the metrics express that a positive trend started in October.
In 2020, the value of Bitcoin closed September at USD 10,750 while skyrocketing by approximately 25% in October standing at USD 13,450.
September of this year was pessimistic regarding the price, but many crypto advocates called for waking them up. On September 26th, Civic co-founder Vinny Lingham said it looked like September 2017 and asked to recall what happened next.
On October 1st, the price of Bitcoin increased from USD 43,500 to USD 48,500 in 24 hours, representing an increase of 11.49%.
Bitcoin went through months of negative returns before July and August, and prices fell again. Analysts attributed the downward trend to China banning cryptocurrencies and exchanges.
The first cryptocurrency also suffered losses when El Salvador adopted it as legal tender. Furthermore, its value suffered a sharp drop due to the Evergrande real estate crisis in recent weeks.
September Was Slow, but Institutional Products Linked to Bitcoin Gained Advantage
All of those negative market trends occurred after Bitcoin hit a high of USD 52,000 in early September. Although the cryptocurrency markets were bullish, the prices in September were not that high. A recent report from Cryptocompare indicates that institutional products linked to Bitcoin saw gains.
The data provider showed that Bitcoin-linked products saw the highest inflow of any asset on the market. They averaged USD 31.2 million per week, CryptoCompare noted. The document added that there could be bullish behavior by the end of 2021.
The value of Bitcoin approached the USD 50,000 zone on October 1st. The cryptocurrency has resistance at that level, especially when it reaches USD 53,000.
The Value of Bitcoin Rises after the Crash of Facebook
The market capitalization of Bitcoin (BTC) exceeded that of Facebook after the latter’s share price fell by almost 5%. The cause of this was a worldwide blackout of its servers that left billions of users without access. In addition, the value of the cryptocurrency went above the barrier of USD 49,000.
Right now, Facebook’s market capitalization is USD 919.78 billion while Bitcoin’s is USD 922 billion, according to data from CoinMarketCap.
In the last few hours, the price of Bitcoin rose by 2.2%, while Facebook saw a total reduction of 4.89%. Facebook suffered losses of around USD 280 billion as a result of its servers going down.
Bitcoin has proved capable of resuming and exceeding its all-time highs after dropping sharply. For that reason, many analysts even predict the pioneering cryptocurrency will reach USD 1,000,000 by the end of 2021 or during 2020.
By Alexander Salazar