Bitcoin price soared to a new $68,025 record as ethereum jumped 1% to $4,814 on Tuesday from an all-time high two days earlier. This way, bitcoin –the largest cryptocurrency in market cap terms– has broken its $67,056 mark from October, which sends crypto assets on a high.
According to CoinGecko, the total value of the crypto market has topped a record $3.1 trillion. Bitcoin and ether have respectively grown 130% and 550% this year, while experts are trying to identify the causes for the rise.
Martha Reyes, head of research at Bequant, says: “This move is a culmination of months of net outflows from exchanges and coming off the market, coupled with increasing demand. This creates a supply shock and we are far from levels where long-term holders, who make up a greater number of investors, start taking significant profits so 100k is on the horizon.”
“Persistent negative yields due to Central Bank intervention, trillions of dollars of pandemic savings and a better global growth outlook as shown by the latest PMIs, mean equities, particularly in the US, and digital assets remain well supported,” she adds.
Last Push In Q4
For Mikkel Morch, executive director & risk management at ARK36, “all the indicators seem to show that the markets have only begun to warm up. To sum it up, exchange reserves are at an all-time low and still trending downwards.”
“There is less Bitcoin available to buy and bitcoin whales –accounts that have amassed large amounts of BTC– haven't started taking large profits yet –meaning that they're waiting for even higher prices.”
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According to Bloomberg, record-low real yields might be fueling the desire for riskier investments, possibly putting some markets against the wall. In an earlier report, the Federal Reserve cautioned that asset prices are susceptible to sentiment changes, and it also “flagged dangers from stablecoins, a type of token supposed to have a steady value.”
Some analysts assert that a record in bitcoin price might be the “final push” ahead of the fourth quarter as cryptocurrencies will likely stabilize in 2022, hence anticipating further rises in the forthcoming weeks.