Bitcoin closes October at a record high
Bitcoin completed October 2021 with a gain of 40%, reaching above $60,000.
Forecasts for November differ dramatically. Some predict that the month will close over $100,000, while others predict a drop in BTC to $50,000.
Regardless of what comes next, market participants are optimistic. Not only $60,000 but $61,000 is now the target for November.
However, Bitcoin closed Sunday with noticeable volatility downward to $59,500, before being able to surpass $62,000 a few hours later.
After correcting from overnight lows, BTC / USD is trading at $62,000. Thus, October was the best month since December 2020.
Difficulty levels up to eighth in a row
This week, mining difficulty will result in an eighth positive adjustment in a row, which has not happened since 2018. It will increase to 21.89 trillion, just over 3 trillion below its all-time high.
Estimates show that hash rates are still trending towards new all-time highs. The average weekly hash rate is now around 159 exahashes per second (EH / s), which is closer than ever to the April record of 180 EH / s.
Major exchange Kraken pointed out in its research last week that the price rallies and surges to all-time highs of $67,100 failed to tempt hodlers to sell BTC.
Analyst Willie Wu also noted this trend, saying that so-called “hodlers of last resort” are still committed to their investments, and most of them are miners.
BTC exchange reserves are now at their lowest level in three years, according to fresh data from analyst firm Glassnode.
At the time, late in 2018, Bitcoin was heading into the pit of its previous bear market, which bottomed out in December at $3,100. Since then, the price movement has changed by an order of magnitude, but the balances are still shrinking.
The exchanges now control 2.47 million BTC. At their peak in April 2020, there were over 3.1 million BTC in their order books.
Among other things, some familiar trends in traditional markets and their impact on crypto markets may emerge in the coming week.
Market expectations have shifted to expecting two whole rate hikes in 2022 and 2023. Such conditions increase the attractiveness of Bitcoin as a deflationary asset class with a mathematically verifiable supply limit.
Institutional influx into existing Bitcoin investment products, as well as recently launched Exchange Traded Funds (ETFs), underscore the growing demand.