Bitcoin surpasses the $57000 mark

KEY POINTS:

-- Bitcoin rose as much as $57,597.60, the highest level since early May

-- Inflows to the crypto-focused funds rose to $225 million last week, the highest in five months

Bitcoin extended its two-week rally by crossing the $57,000 mark on Monday.

Data from CoinMetrics suggests that the cryptocurrency rose as much as $57,597.60, the highest level since early May. Ether added nearly 2% to $3,599.22.

Bitcoin is currently about 10% below the all-time high of $64,863 reached on April 14. Analysts expect further upside due to the resurgence of buying activity and seasonal strength in the fourth quarter, reported Coindesk.

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The cryptocurrency is now up 30% for the month and up 97% for the year. Many are expecting this rally to be the door to the next all-time high. Experts however do note that Bitcoin tends to have a correction in its value after 40 days, on average.

The bullish sentiment in the cryptocurrency market fueled an upside among crypto-focused funds. The latter took in more than double the amount of new money last week than they did in the week before that.

A report by CoinShares noted that the jump was largely driven by bitcoin-focused funds. Inflows to the funds rose to $225 million, which has been the highest in five months.

On the other hand, Ethereum-focused funds saw minor outflows last week, totaling $14 million. They had gained in recent months as bitcoin funds were mostly flat to down. Funds focused on alternative blockchains such as Litecoin, Ripple, and Polkadot also recorded outflows last week.

Bitcoin’s rally comes as investors expect a bitcoin futures ETF to be approved soon. Recent comments from the heads of the Federal Reserve and Securities and Exchange Commission, who said they have no intention of banning bitcoin, have also encouraged investors.

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