The price of Bitcoin has risen to its highest level since May, having increased by 30% in October

According to Coin Metrics, Bitcoin extended its two-week rally on Monday, climbing to its highest level since early May.

The cryptocurrency was recently trading more than 3% higher at $57,530.81, after reaching an intraday high of $57,740.82.

This rebound—just 12% away from Bitcoin’s all-time high of around $65,000—comes amid growing optimism and expectations that a Bitcoin futures ETF may soon be approved. Ned Davis Research noted that recent remarks from the Federal Reserve and U.S. Securities and Exchange Commission (SEC) officials suggesting no intention to ban Bitcoin appear to have "encouraged" investors.

Ben McMillan, Chief Investment Officer at quantitative index fund manager IDX, attributed the rise in Bitcoin's price to increasing concerns that inflation is not a temporary phenomenon, as well as to increasingly favorable trading data supporting Bitcoin's price.

“We're seeing food prices hitting decade highs, oil prices breaking $80 for the first time in five or six years, and it's putting a real strain on consumers’ wallets,” he said. “Many investors are revisiting Bitcoin’s original appeal as a store of value whose worth cannot be dictated by any central bank.”

McMillan added that trading data show price movements continue to be driven by institutional investors, especially evident in trade size and the number of large transactions.

Pat Tschosik of Ned Davis Research pointed out that the one-year correlation between Bitcoin and gold has declined to the point of nearing negative territory, indicating the two assets no longer move in sync.

He told CNBC, “If the dollar and real interest rates rise, Bitcoin may be seen as the preferred inflation hedge.”

The cryptocurrency has risen nearly 30% this month and is up 95% so far this year. While many expect the current rally to set the stage for a new all-time high, Ned Davis noted that Bitcoin typically experiences a pullback every 40 days on average.