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The top 3 cryptocurrencies are getting an extra boost. Bitcoin hit its all-time high on Tuesday after hitting $ 19,000 for the first time in nearly three years.
Image credit: Gulf News
LONDON: Bitcoin returned to its all-time high on Tuesday after hitting $ 19,000 for the first time in nearly three years. The most popular cryptocurrency in the world is up 3% to $ 18,918, close to its all-time high of $ 19,666. Bitcoin gained nearly 40% in November alone and has risen by around 160% this year.
Fueled its fiery rally was demand for riskier assets amid unprecedented fiscal and monetary stimuli designed to counter the economic damage of the COVID-19 pandemic, the hunger for perceived inflation-resistant assets and the expectations that cryptocurrencies will gain mainstream acceptance.
Bitcoin’s 12-year history has been studded with soaring gains and equally steep declines. Its markets remain very opaque compared to traditional assets such as stocks or bonds. Its rally this year has prompted some investors to argue that the cryptocurrency could more than fivefold in price to $ 100,000 in one year, attracting the eyes of skeptics who say it is a purely speculative asset.
James Butterfill of digital asset manager CoinShares said the growing activity in the bitcoin derivatives markets “implies that sophisticated investors and institutional investors are now buying bitcoin.”
“The latest bitcoin rush … was fueled by a lack of supply-side liquidity, especially on exchanges,” said Jacob Skaaning of crypto hedge fund ARK36, adding that the volume of bitcoin on trading platforms has decreased. due to high demand. The cryptocurrency markets have matured since the retail-fueled bitcoin rally in 2017, attracting larger investors.
James Butterfill of digital asset manager CoinShares said the growing activity in the bitcoin derivatives markets “implies that sophisticated investors and institutional investors are now buying bitcoin.” Smaller digital currencies, which often move in tandem with bitcoin, have taken a hiatus after gaining sharply in the past few days.
Ethereum, the second largest cryptocurrency, dropped slightly after hitting its high since June 2018 on Monday before an upgrade to its blockchain network that is expected to make it faster and attract more users. The third largest, XRP, gained 2%, turning positive after climbing nearly 40% on Monday to its 2-1 / 2-year high.
Smaller digital coins go up
Ethereum has jumped to highs since June 2018 as traders cite the upcoming XRP blockchain update has gained 75% in three days. The digital currencies Ethereum and XRP surged on Monday, gaining momentum as bitcoin moved towards its all-time high.
Ethereum, the second largest cryptocurrency by market cap after bitcoin, has jumped 7% to its highest since June 2018, taking its earnings to over 25% in the last three days alone. has been spurred by growing demand ahead of an upgrade to its blockchain network – expected in early December – which should make it faster and more secure.
The third largest XRP coin climbed 15% to its two-year high, taking earnings to over 75% in the past three days. Traders said there was no immediate news for its jump on Monday. The price of these so-called altcoins is closely linked to bitcoin. Less liquid than their larger cousin, they tend to suffer from even greater volatility than the original cryptocurrency.
