Crypto rally lifts ether to new record, bitcoin to near 3‑week high

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SYDNEY: Bit­coin ral­lied toward its all-time high on Mon­day and ether climbed to a fresh record as cryp­tocur­ren­cies rode a wave of momen­tum, flows, favourable news and infla­tion fears.

Bit­coin jumped more than 4% to as high as $66,170, approach­ing the unprece­dent­ed $67,016.50 lev­el reached on Oct. 20, while ether — which under­pins the ethereum net­work — sat at a record top of $4,768.07.

Ether is up around 59% since the start of Octo­ber and bit­coin about 51% as investors have cheered last mon­th’s launch of a U.S. futures-based bit­coin exchange-trad­ed fund and sought expo­sure to an asset class some­times regard­ed as an infla­tion hedge.

Falling real yields, as traders brace for infla­tion, adds to the attrac­tive­ness of assets such as gold and cryp­tocur­ren­cies which do not pay a coupon, said Kyle Rod­da, ana­lyst at bro­ker IG Mar­kets, adding that the mood in the sec­tor has also been good.

“Finan­cial insti­tu­tions want to be a part of it, reg­u­la­tors don’t want to clamp down on it too much,” he said. “We’re almost past the inflec­tion point, where it’s part of the sys­tem and its going to be very, very hard to extri­cate it.”

In recent weeks, Aus­trali­a’s biggest bank has said it will offer cryp­to trad­ing to retail cus­tomers, Sin­ga­pore­an author­i­ties have sound­ed pos­i­tive on the asset class and spillover from a pos­i­tive mood in stocks has also lent support.

Last week, New York May­or-elect Eric Adams said he would take his first three pay­checks in bit­coin and sig­naled his inten­tion to make his city the “cen­ter of the cryp­tocur­ren­cy indus­try” after a sim­i­lar pledge from Miami’s may­or. — Reuters



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