Bitcoin, ether scale new peaks as flows pour in to crypto

Please fol­low and like us:
Pin Share

A rep­re­sen­ta­tion of the vir­tu­al cryp­tocur­ren­cy Ethereum is seen among rep­re­sen­ta­tions of oth­er cryp­tocur­ren­cies in this pic­ture illus­tra­tion tak­en June 14, 2021. REUTERS/Edgar Su/Illustration

  • Bit­coin breaks past $68,000; Ether nears $5k
  • CoinGecko puts cryp­to mar­ket cap over $3 trillion
  • Flows surge as momen­tum runs hot

SYDNEY, Nov 9 (Reuters) — Bit­coin and ether made record peaks in Asia trade on Tues­day, with enthu­si­asm for cryp­tocur­ren­cy adop­tion and wor­ry about infla­tion dri­ving momen­tum and flows into the asset class.

Bit­coin rose as high as $68,564 in Asian after­noon trade and ether , the sec­ond-biggest cryp­tocur­ren­cy by mar­ket val­ue, ear­li­er hit $4,825.

Both have more than dou­bled since June and added near­ly 70% against the dol­lar since the start of October.

“We’re get­ting the feel­ing that the mar­ket has shift­ed,” said Matthew Dibb, chief oper­at­ing offi­cer at Sin­ga­pore-based cryp­to asset man­ag­er Stack Funds, point­ing to a sharp pick up in demand from large investors and even pen­sion funds.

“Peo­ple are now fig­ur­ing out that not hav­ing any expo­sure, even a small amount, is prob­a­bly not a good thing mov­ing for­ward, so they’re hav­ing to allo­cate at this price,” he said.

Mar­ket momen­tum has been gath­er­ing since last mon­th’s launch of a futures-based bit­coin exchange-trad­ed fund in the Unit­ed States raised expec­ta­tions of flow-dri­ven gains. read more 

Inflows into bit­coin prod­ucts and funds have hit a record $6.4 bil­lion so far this year, data from dig­i­tal asset man­ag­er Coin­Shares showed, and totaled $95 mil­lion last week. read more 

Oth­er pieces of pos­i­tive news have also helped, includ­ing plans by Grayscale, the world’s largest dig­i­tal cur­ren­cy man­ag­er, to con­vert its flag­ship bit­coin trust (GBTC.PK) into a spot-bit­coin exchange trad­ed fund. Last week Grayscale also applied to list a “future of finance” fund that would track com­pa­nies involved in the grow­ing dig­i­tal economy.

“Cryp­to is where the fast mon­ey is at,” said Chris West­on, head of research at bro­ker­age Pep­per­stone. “(Ether) is trend­ing like a dream and I’d be long and strong here,” he added.

“Clients are net long, with 79% of open posi­tions held long, and I can sense the $5k par­ty could get going soon.”

Oth­ers flagged cause for some near-term cau­tion on bit­coin, how­ev­er, as the cost of fund­ing long posi­tions has crept high­er in recent days, accord­ing to trad­ing plat­form Bit­MEX — some­times a pre­cur­sor to a pullback.

Still, the moves so far have car­ried the token more than 1680% high­er from its March 2020 lows and helped lift the total mar­ket cap­i­tal­i­sa­tion of cryp­tocur­ren­cies above $3 tril­lion, accord­ing to cryp­to price and data aggre­ga­tor CoinGecko.

Coin­Mar­ket­Cap put it slight­ly low­er at $2.94 tril­lion. Either way true believ­ers, or “hodlers” in cryp­to mar­kets ter­mi­nol­o­gy, have felt vin­di­cat­ed and remain bullish.

“They threw every­thing at the beast and still it moves,” said pay­ments strate­gist and some­times host of the Around the Coin pod­cast, Bri­an Roem­mele, on Twit­ter. “Next stop: #Bit­coin $72000.”

(This sto­ry cor­rect­ed spelling of Roem­mele in final paragraph)

Report­ing by Tom West­brook; Edit­ing by Ros­al­ba O’Brien, Lin­coln Feast, Mura­liku­mar Anantharaman

Our Stan­dards: The Thom­son Reuters Trust Principles.

Source link

Please fol­low and like us:
Pin Share

Leave a Reply

Your email address will not be published. Required fields are marked *