The Bitcoin bulls reveled as speculators increased bets on the crypto to reclaim its all-time highs.
The flagship crypto remained above $57,000 at writing, while the broader crypto market fell significantly.
Easing concerns about regulatory efforts in China and the U.S., coupled with hopes that the Securities and Exchange Commission may approve a Bitcoin ETF, are factors that fueled Bitcoin's 90% surge since July.
But, a new catalyst must emerge for Bitcoin to reach $60,000. The relative strength index indicates Bitcoin is in the overbought territory, hovering around 70.
There was a long-awaited boost in network activity during the first week of October, increasing the likelihood that new demand is about to enter the fourth quarter of 2021.
Each day, active entities, the number of individuals on the chain, have grown 19% to 291,000, hitting a record high last week.
In late 2020 at the dawn of the last bull run, these counts were similar. More active participants have historically characterized early-stage bull markets as the asset gains interest.
JP Morgan CEO Jamie Dimon told the media that cryptocurrencies are likely to be regulated, citing Washington's paranoia about stablecoins and cryptocurrencies.
In another virtual meeting of the Institute of International Finance, Dimon said,
"Blockchain can be real, and stablecoins can be real. The government is going to regulate them, regardless of what people think."