Monday, December 6

Crypto euphoria: Bitcoin flirts with $ 70,000 and Ethereum hits a new all-time high

This escalation in the price of BTC is explained by several factors. First, there is the inflation. According to several analysts, the high rates of inflation that are registered around the world are causing investors to seek refuge values ​​to protect themselves from rising prices. In this sense, they would be using Bitcoin as a hedge against inflation.

On the other hand, it seems that the whales, large investors in cryptocurrencies, would have something to do with the sudden push of BTC. According to data published by Chainalysis, these heavyweight investors accumulated almost 200,000 Bitcoins in the last week of October.

In this sense, it should be noted that the rise in Bitcoin would be driven less by financed transactions and more by direct purchases from investors. “Importantly, the rally does not appear to be driven by leverage, but is the result of increased demand in the spot market,” explains Mikkel Morch, director of crypto hedge fund ARK36 in statements collected by . “There is currently very little liquidity on the sell side,” Morch said in a report published by ARK36.

As has happened on other occasions when Bitcoin, or any other cryptocurrency, has started a bullish streak, more or less well-founded speculations arise about the price that the currency in question could reach. In the case of BTC, Mikkel Morch estimates that the price of the cryptocurrency could reach US $ 70,000 in the short term, something that does not sound unreasonable if one takes into account that today it is already moving around the u $ s66,000.

The investment bank JP Morgan He has made his own predictions about the price of Bitcoin, and of cryptocurrencies in general, and the truth is that he gives one of lime and another of sand. The entity underestimates that the price of Bitcoin should settle around US $ 35,000, a level 47% lower than what is currently listed on the market. The difference, they point out from JP Morgan between reality and its valuation is due to the volatility of the crypto.

In the opinion of the analysts of this bank, volatility has a great price for the cryptocurrency, since it reduces its attractiveness among investors. Hence, in the medium term they do not see US $ 100,000 as a limit for Bitcoin and recommend that in an average investment portfolio their exposure to Bitcoin reaches just 1%.

In any case, JP Morgan specialists consider that, if this volatility is reduced during the next year, its price should reach new highs in the order of US $ 73,000. What they are sure of is the growth of the entire digital currency universe, which they quantify at 15%.

Bitcoin is not the only cryptocurrency whose value is growing. In fact, it is not even the fastest growing. Ethereum, the second most important crypto by market capitalization, registers a record in its value today. The Ether’s new peak is up 540% so far this year, almost 11% from last week and 1.8% on the day.

During the year, Ether has remained above Bitcoin regarding its increase in value. It has achieved 415% higher growth. So far in 2021, bitcoin has seen a 125% increase in value.

However, despite this data, the difference between the two main cryptocurrencies is too wide to even fantasize that Ethereum could jeopardize the reign of bitcoin in the medium term. Ether’s market capitalization is $ 564 billion, while the leading cryptocurrency has $ 1.25 trillion. Regarding the total cryptocurrency market, the dominance of Ether represents 18.61% and that of Bitcoin 41.44%.

Last week we already talked about the great behavior that the solana price was having. Well, the cryptocurrency has outdone itself by setting records almost daily. SOL, the solana token reached $ 250 on Saturday. The price rebound also caused an increase in the network’s market capitalization, exceeding US $ 72.5 billion. This figure has already been surpassed and has climbed to exceed US $ 75,000.

These variations have placed SOL competing for the fourth place of the main cryptocurrencies to Cardano. According to CryptoSlam’s data aggregator, Solana’s secondary sales have generated a total of approximately $ 497.7 million derived from some 348,000 transactions executed through November 2.

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