Bitcoin Spikes Again When News Comes From Soros, But McMillan Predicts It Will Fall Again In The Near Future

Bitcoin prices tend to rise, when George Soros trades this cryptocurrency. (photo: doc. unsplash)

JAKARTA – Bitcoin prices jumped on Wednesday to their highest level in five months, as market sentiment continued to improve. Partly because of news that a hedge fund controlled by billionaire investor George Soros started trading bitcoin.

Investors are also expecting a seasonal rally in cryptocurrencies this quarter. The world's largest cryptocurrency in terms of market value rose to US$55,499.96, a record high since mid-May. It crossed the US$50,000 mark for the first time in four weeks on Tuesday, October 5 amid, in part due to increased institutional interest. In the latest news, Bitcoin was last up 6.3% at 54,750 US dollars.

According to a report on Wednesday, October 6, Soros Fund management confirmed at a Bloomberg summit that the fund trades bitcoin. "We have a few coins - not a lot," said Dawn Fitzpatrick, the fund's chief executive.

There is a seasonal factor too.

“Bitcoin has historically underperformed in October, which is close to making gains… prices are now a self-fulfilling prophecy. I have said many times since the summer that I expect new all-time highs in October,” said Ruud Feltkamp, CEO of the cloud-based automated crypto trading bot Cryptohopper.

"So what's the reason for this new pump? I think it's partly because of the market cycle we're in, where the emotional part plays an important role," Feltkamp said.

Bank of America Corp. published Monday its first coverage of research focused on cryptocurrencies and other digital assets. US Bancorp announced the launch of a cryptocurrency depository service for institutional investment managers who have private funds in the United States and the Cayman Islands.

Smaller coins, which usually move in tandem with bitcoin, are also up. Ether was up 2.2% at $3,594 and XRP was up 0.2% slightly at $1.0865.

Ben McMillan, chief investment officer at IDX Digital Assets, a factor-based crypto index strategy, noted that based on analysis of on-chain data, he saw a steady increase in the number of new bitcoin addresses, following a massive drop off in the first half of the year, as well as a steady increase in the number of new bitcoin addresses. the number of bitcoins exiting the exchange.

Both factors - new addresses and bitcoin moving away from exchanges - are "structurally bullish indications." McMillan said while the structural bull case for bitcoin is strong, "there are still non-trivial downside risks in the near term."