On Tuesday, both Bitcoin and Ether managed to reach record highs, with momentum accelerating and flowing into the crypto market because of worries about inflation and enthusiasm linked to crypto adoption. Even though both leading digital currencies eventually saw their highs come down in the US session, it was clear that their trajectory is moving upwards. Bitcoin went as high as $68,564.40 and had declined by 0.1% to reach $67,325. The second-biggest currency in terms of market capitalization, ether had earlier gone as high as $4,842.65, before it declined by 0.7% to trade at $4,774. Since June, both cryptocurrencies have seen their value almost double.
Moreover, since the beginning of October, both of these virtual currencies have also climbed up by almost 70% against the US dollar. According to market experts, this rise in value is a combination of increasing demand as well as the net outflow that has occurred from exchanges in the last few months. This means that there is a supply shock in the market and since most of the investors are long-term holders, it is expected that Bitcoin will soon reach the $100,000 mark. Last month, the United States introduced a bitcoin exchange-traded fund based on futures and this has significantly pushed up expectations of gains.
Therefore, it is not a surprise that market momentum has been increasing. Already this year, there have been inflows of $6.4 billion into bitcoin funds and products and last week alone, the total was around $95 million. According to analysts, upbeat prospects of global growth and huge pandemic savings indicate that digital assets will continue to see support. There have also been other positive news in the market that have been helpful. These include plans of the largest digital currency manager in the world, Grayscale. It plans on converting its bitcoin trust into a bitcoin exchange-traded fund.
Moreover, in the previous week the asset management firm also applied for a fund called ‘future of finance’ for tracking companies that are involved in the digital economy. Some people have a very positive outlook where crypto is concerned, but there are also those that have warned of being cautious when it comes to Bitcoin. Nonetheless, it cannot be denied that so far, the pioneer cryptocurrency has increased by almost 1680% from the lows it had reached back in March 2020. As a matter of fact, it has helped lift the market capitalization of the entire crypto space to more than $3 trillion, as per CoinGecko.
However, there is a bit of a conflict as CoinMarketCap has put this figure around $2.93 trillion. Regardless, ‘hodlers’ as they are known in the crypto market, or true believers have remained bullish and have felt vindicated by this climb. Market strategists said that these are the people who threw everything at this cryptocurrency and it has proven that it is worth it. According to expectations, they now believe Bitcoin will hit an all-time high of $72,000 before it steadily climbs to the $100,000 mark in the near future.