Bitcoin and Ethereum: New Record Highs
Just 24 hours after the top digital asset surged more than $ 50,000 and hit a market valuation of $ 1 trillion, BTC on Saturday registered another all-time peak, breaking the $ 57,000 mark for the first time and sparking a broad rally among other virtual currencies.
Bitcoin continues its growth but nothing lasts forever
Bitcoin’s price has nearly doubled this year, soaring upwards as it benefits from increased institutional adoption. Having risen to this level, the world’s most famous cryptocurrency has grown by an impressive 98% this year, according to additional data from CoinMarketRate.
Bitcoin ended 2020 with a value of just under $ 29,000 after an impressive 300 percent rally over the previous four quarters. Some market observers attribute the steady rise in the price of BTC to high demand from buyers seeking to insure themselves against market inflation.
The current bull market was markedly different from what happened between 2017 and 2018, when BTC prices hovered around $ 19,800, but lost the strength to maintain these levels, falling below $ 15,000 in a matter of days.
Bitcoin is up 55% since the end of last month, and more than quadrupled in 2020. For years after it was first introduced more than 10 years ago, the cryptocurrency has been trading for just a few cents.
People have different views of Bitcoin: supporters vie with cynics for the dominant narrative of ascent. Proponents praise the asset for its ability to mitigate risks such as inflation, while non-believers still resort to the Cue Ball, as they feel the anxiety that accompanies the wave of financial and tax changes.
At the moment, the Cue ball is trading for $ 54,342. USA.
Mad Run ETH
Meanwhile, Bitcoin has been joined in an ongoing rally by Ether, the Ethereum blockchain’s own digital asset. The price of ETH set a new all-time high late Friday, surpassing the $ 2,000 level for the first time.
According to CoinMarketRate, Ether reached a new record of $ 2,033. 08, an increase of almost 7%, and the market value of the cryptocurrency exceeded $ 233 billion. ETH is up 173% since the beginning of the year.
The two largest crypto assets, BTC and ETH, are currently on track to break new records, and make the doubters think again.
Despite recent disruptions that helped competitors grow, ETH broke the $ 2K mark for the first time, while the value of the MTC reached $ 56K, and exceeded 1 trillion capitalization.
Ether has added a new revenue channel to its capitalization as more institutional investors have strengthened their positions in recent weeks.
The cost of one Ether is currently $ 1,813, which is more than 20 times more than last year.
According to CoinMarketRate, the increase in the price of Ether over the past few weeks has led to the fact that the market value of Ethereum has exceeded $ 225 billion.
The latest rally represents a nearly 170% increase since the start of 2021. Bitcoin, by comparison, has grown to an equally impressive 93% over the same period.
Many leaders of the crypto Space are Optimistic about ETH:
“The global computer Network for Web3 (Internet 3.0) is a very interesting and new thing. I would say that in the next three months, we can see that Ethereum will reach the $ 2,500 mark, ” Luis Cuende, co-founder of Aragon, was quoted as saying by Reuters. Aragon is a decentralized application on the Ethereum blockchain.
It seems that the ascent of Ethereum was caused by at least two factors:
First, retail and institutional investment in Bitcoin has helped boost interest in digital currencies in general.
Secondly, DeFi (decentralized finance) is gaining popularity, a significant part of which works on top of the Ethereum blockchain.
“We believe that investors are looking to diversify and this is becoming more comfortable with the fundamentals of Ethereum,” James Butterfill said in a research paper cited by Investopedia. Butterfill is an investment planner at CoinShares.
The ethereum slingshot, according to Kenetic Capital co-founder Jehan Chu, is on the move, as ETH-the queen of the crypto space-looks set to continue its growth in tandem with the king of cryptocurrencies – BTC.
Despite these circumstances the crypto market is facing a correction.