Bitcoin and Ether Surge Amid Crypto Mania
Bitcoin Rallies in Volatile Trade
Bitcoin experienced another rally on Wednesday amidst volatile trade, while ether also surged nearly 10%, showcasing the ongoing crypto mania sweeping through the investment community.
Bitcoin and Ether Price Movements
Bitcoin surged by 6.8% to reach $67,645 before settling at $66,896, following a minor drop from its previous record high. Ether, on the other hand, jumped by 9.8% to hit its highest level since January 2022, closing at $3,827.
Factors Driving the Crypto Market
The surge in Bitcoin, up 55% this year, can be attributed to increased investments in U.S. spot exchange-traded crypto products and the anticipation of global interest rate reductions. Additionally, positive market sentiment is supported by upcoming events like an ethereum upgrade and bitcoin “halving,” which slows down the minting of new bitcoins.
- Billions of dollars have flowed into ETFs recently.
- Approval of 11 spot bitcoin ETFs by the U.S. SEC marked a milestone.
- Institutional investors are increasingly showing interest in crypto assets.
Market Response and Speculation
The recent optimism surrounding Bitcoin has also impacted other digital tokens like ether, which has seen over a 60% increase since the beginning of the year. However, the speculative nature of these assets remains a concern, evident in Bitcoin’s sharp reversal after hitting a new high.
Bitcoin’s Real Value
Deutsche Bank strategist Jim Reid highlights that Bitcoin has yet to reach its all-time high in real terms, factoring in inflation. With consumer prices rising over 10% since the previous peak, the real value of Bitcoin would exceed $75,000 in current prices.
