Bitcoin and Ethereum, which together move 62% of the cryptocurrency market worldwide, reached all-time highs on Tuesday, amid enthusiasm for the adoption of cryptocurrencies and concerns about inflation, which drives flows towards this type of asset.
The world’s most famous cryptocurrency reached $ 68,493.30 per unit this Tuesday around 6:00 a.m. Mexico City time, reaching an all-time high price ever seen, although it later dropped to $ 67,311.19.
Bitcoin accumulates a gain of 132.6% so far in 2021 and has had a rebound of 68.49% since touching $ 40,651 on September 21.
Bitcoin operates $ 1.27 trillion in market value, representing 43.6% of the total cryptocurrency market on a global scale, which surpassed $ 3 trillion on Monday.
The cryptocurrency market represented $ 3.7 trillion on Monday, according to the CoinGecko page, which monitors the market for more than 10,000 crypto assets. It is currently at $ 2.916 trillion.
“The market for crypto assets is growing with astonishing speed,” explained Ipek Ozkardeskaya, Market Analyst for SwissQuote.
For the analyst, there is “a part of speculation and a part of reality.”
Ethereum, the second most traded cryptocurrency in the world, reached $ 4,842.65 per unit before dropping to $ 4,755.60. This virtual currency has a capitalization value of 563,158 million dollars, occupying 19.3% of the total market. So far this year it has increased its price by 546.3 percent.
Strong momentum
Momentum in the market has been building since a bitcoin futures exchange-traded fund was launched in the United States last month.
Inflows to bitcoin products and funds have reached a record $ 6.4 billion so far this year, according to data from digital asset manager CoinShares, and totaled $ 95 million last week.
Falling real returns, as traders brace for inflation, increases the attractiveness of assets like gold and cryptocurrencies, according to Kyle Rodda of brokerage IG Markets.
The price of gold is trading at a price of 1,831.75 dollars per ounce, accumulating a 2.7% increase in November, from the 1,783.90 dollars in which it closed October, driven by the preference of investors as a value safeguard against inflation.
“Financial institutions want to be part of this market and regulators don’t want to suppress it too much,” Rodda said. “We are almost past the tipping point, where it is part of the system and it will be very, very difficult to get it out.”
Other assets
In the market there are more than 13,877 cryptocurrencies, and the leaders are bitcoin and ethereum, which operate 62.9% of the total.
Likewise, among the first 10 currencies they move 80.2% of the total.
Binance Coin has a market value of $ 106.209 million, followed by Cardano with a value of 76.620 million and Tether with 73.287 million.
Within the Top 10, are the cryptocurrencies of the Shiba Inu and Dogecoin meme, which have a market value of 30,156 and 36,360 million dollars respectively.
Some investors think that cryptocurrencies are a way to hedge against inflation, which is increasing in both Europe and North America.
“It is a very risky strategy given how volatile the cryptocurrency is and seeing how its value can suffer pressure from regulators, or even comments on social networks,” Susannah Streeter, Market analyst for Hargreaves Lansdown, warns in a note.
preferences
Tim Cook, Apple’s chief executive, acknowledged that he has a holding in crypto assets and that he has been interested in the subject for a long time, according to a report by the CNBC television network.
“I do own crypto assets. I think it’s reasonable to have them as part of a diversified portfolio,” Cook said, during an interview with Andrew Ross Sorkin at the DealBook conference, where he was asked if he owned bitcoin or ethereum.
Cook said his interest in cryptocurrencies was strictly personal, so he ruled out the possibility of Apple buying such assets as an investment or accepting them in exchange for products. (With information from Agencies)
Reference-www.eleconomista.com.mx