New Delhi: The most popular cryptocurrency, Bitcoin has experienced a two-and-a-half- week spike on Monday while ether, the second most popular crypto also witnessed a fresh record as cryptocurrencies are riding high on a wave of momentum, flows, favourable news, and inflation fears.
When last checked, Bitcoin was up about 3% amounting to $65,121 and Ether, which comes under the Ethereum network created a new record of $4,711.
Since the start of October, Ether is 57% up as well as Bitcoin experienced a 50% surge as investors have encouraged last month’s launch of a U.S. futures-based bitcoin exchange-traded fund to look into an asset class that is often regarded as an inflation hedge.
Diving into real yields, as traders brace for inflation, enhances the attractiveness of assets such as gold and cryptocurrencies, which do not pay a coupon stated Kyle Rodda, the analyst at broker IG Markets. She further added that that mood in the sector has 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 it’s going to be very, very hard to extricate it,” said Rodda.
Recently, Australia’s biggest bank stated that it will allow crypto trading to retail customers. Besides, Singaporean authorities sounded positive on hearing about the asset class and spillover from a positive mood in stocks has also swayed support.
Meanwhile, New York Mayor-elect Eric Adams stated that he would take his first three paychecks in Bitcoin and intended to make NYC the “center of the cryptocurrency industry,” following a similar promise from Miami’s mayor.
