The Bitcoin (BTC/USD) price rallied to the highest level in four months as demand for the digital currency rose. It is trading at $55,000, bringing its total market capitalization to more than $1 trillion. The coin has jumped by about 40% from its lowest level in September.
Why Bitcoin rocketed higher
There are three main reasons why the Bitcoin price rallied in the overnight session. First, on a macro level, there are signs that the US will avert a fiscal crisis in the near term. In a statement, Senator Mitch Mcconnel made an offer that will keep the government funded in the coming months. This announcement also helped push stocks relatively higher.
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Second, the BTC price rose after the coin gained a new influential supporter. Investors cheered news that a fund owned by George Soros had invested in the currency. This is notable since Soros is one of the richest people on earth. He is also a respected investor with decades in the industry. He is best known for making $1 billion by betting against the British pound.
In a statement, Dawn Fitzpatrick, the CEO of the fund said that he owned some coins. He also insisted that the holdings were not a lot.
Another likely catalyst for Bitcoin came from US Bancorp, one of the biggest banks in the United States. Earlier this week, the bank said that it will start offering crypto custody services for institutional investors. The company said that it was inspired by the significant demand from large institutional investors.
The next key catalyst for the Bitcoin price will be the US nonfarm payrolls scheduled for Friday. The data will likely show that the American economy added more jobs in September than it did in the previous month.
Bitcoin price forecast
The Bitcoin price did two important things this week. First, it managed to rally above the key resistance level at $50,000. Second, the BTC managed to move above the key resistance at $52,713, which was the highest level in September. This is a sign that there is more demand for the currency.
Meanwhile, the BTC price is above the short and longer-term moving averages while the MACD has moved above the neutral level. Therefore, the coin will likely keep rallying, with the initial resistance being at $60,000.
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