Bitcoin, ether hit all-time highs as momentum accelerates

Bitcoin, ether hit all-time highs as momentum accelerates.

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NEW YORK/SYDNEY, November 9 (Reuters) - Bitcoin and ether hit record highs on Tuesday, with enthusiasm for cryptocurrency adoption and concerns about inflation propelling momentum and flowing into the asset class. Although both virtual currencies retreated from their highest levels in the United States. It was clear that their path was leading to the top.

Bitcoin rose to $68,564.40 and was down 0.1% last time at $67,325, while the price of Ether, the second-largest cryptocurrency by market cap, earlier hit $4,842.65 before trading down 0.7% at $4,774.Both have more than doubled since June and have added nearly 70% to the dollar since early October.

"This move is the culmination of months of net outflows from the exchange and out of the market, as demand increases," said Martha Reyes, head of research at digital asset brokerage and exchange BEQUANT. "This creates a supply shock and we're far from the level where the long-term holders, who are the larger investors, are starting to make big profits, so $100,000 is showing up," he added.

Market momentum has gathered since the launch of the bitcoin futures-based exchange-traded fund in the US last month, fueling expectations for flow-driven gains. Inflows into bitcoin products and funds hit a record $6.4 billion this year, according to data from digital asset manager CoinShares, totaling $95 million last week.  Analysts said the pandemic's massive austerity and a more upbeat global growth outlook suggest digital assets will remain well supported.

Where's the quick money?

Some other positive news, including plans for Grayscale, the world's largest cryptocurrency manager, has also helped turn a major bitcoin fund (GBTC.PK) into a bitcoin spot trading fund. Last week, Grayscale also applied for inclusion in a "Future of Finance" fund that will track companies involved in the growth of the digital economy.

“Crypto is where the fast money is,” said Chris Weston, head of research at broker Pepperstone. "(Aether) is trending like a dream and I'm going to be high and strong here." “Net long clients, with 79% of open positions held for a long time, and I can feel the $5,000 party is about to start.” While others are causing some near-term caution about bitcoin, the cost of funding long positions has risen in recent days, according to trading platform BitMEX - sometimes a precursor to a pullback.

However, the move so far has lifted the coin more than 1.680% from its March 2020 lows and helped push the total cryptocurrency market cap above $3 trillion, according to cryptocurrency pricing and data aggregator CoinGecko. CoinMarketCap puts a slight drop at $2.93 trillion. In both cases, true believers, or “swindlers” in cryptocurrency market parlance, feel justified and remain hopeful. "They threw everything at the monster and it's still moving," said payments strategist and Around the Coin host Brian Roemmele on Twitter. Next stop: #Bitcoin $72,000.

Additional reporting by Tom Westbrook in Sydney and Gertrude Chavez Dre

source : https://www.reuters.com/technology/bitcoin-hits-new-record-crypto-market-cap-exceeds-3-tln-2021-11-08/