Bitcoin price hits record all-time high amid crypto market frenzy

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The price of bitcoin has hit a new all-time high amid a record-breaking rally that has seen its price double since July.

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The cryptocurrency reached above $68,500 for the first time in its history, a rise of over 350 percent over the previous year.

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Other major cryptocurrencies also saw record highs on Wednesday, including Ethereum (Ether), pushing the total crypto market closer to $3 trillion – more than the combined value of the world’s top 12 largest banks.

The market cap of bitcoin alone now exceeds the Swiss franc and the Russian ruble, ranking as the 13th most valuable currency in the world.

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It is the sixth largest asset by market capitalization excluding precious metals, behind only Microsoft, Apple, Saudi Aramco, Alphabet (Google) and Amazon.

Some analysts see this significant increase in price in 2021 as a potential warning to investors who were hoping to make quick profits, as well as noting that the potential to serve as a store of value will not be enough. The reason cryptocurrency is increasingly being referred to as “digital gold”.

“Although bitcoin has legitimate uses, it certainly should not be the world’s sixth-largest asset by market cap. Reaching this position is one of two big red flags,” said George Monaghan, an analyst at data analytics firm GlobalData. is one.” Granthshala,

“The second is that investors are turning away bitcoin in the hope that it will gain value rather than being used as a currency. The value of a product should increase because people use it, not because they invest in it. … On the other hand, the number one asset is gold. Given its current behavior, bitcoin could play a similar store-of-value role in the global economy.

Bitcoin’s price rally has been fueled by a succession of good news for the crypto space, which last month included the first ever bitcoin ETF, and El Salvador officially adopted it as legal tender in September.

“Bitcoin and ether are making new highs with excitement over inflation concerns and more spot ETF filings,” said Jody Gunzberg, Head of CoinDesk Indexes.

“If a spot ETF is approved and the assets are liquidated, it will potentially drive up the price from increased demand. It will also create a more expensive role for investors holding futures-based ETFs because of the potential for future spot prices. expectation increases.

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Credit: www.independent.co.uk /

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