SYDNEY: Bitcoin rebounded to its all-time high and Ether climbed to a new record on Monday as cryptocurrencies saw a wave of momentum, currents, cheap news and inflation fears.
Bitcoin jumped more than 4% to $ 66,170, nearing the unprecedented level of $ 67,016.50 hit on October 20, while Ether – which underpins the Ethereum network – hit a record high of $ 4,768.07 lay.
Ether is up around 59% and Bitcoin around 51% since early October as investors hailed the launch of a U.S. futures-based exchange-traded Bitcoin fund last month and sought exposure to an asset class that is sometimes viewed as inflation protection will.
Falling real returns as traders prepare for inflation add to the appeal of non-coupon-paying assets like gold and cryptocurrencies, said Kyle Rodda, an analyst at broker IG Markets, adding that sentiment in the sector is also good.
“Financial institutions want to be there, regulators don’t want to go too far,” he said. “We’re almost past the tipping point where it’s part of the system and it’s going to be very, very difficult to break free.”
In the past few weeks, Australia’s largest bank announced that it would offer crypto trading to private customers.
Last week, New York City Mayor-elect Eric Adams said he would take his first three paychecks in Bitcoin and signaled his intention to make his city the “center of the cryptocurrency industry” following a similar promise made by the Mayor of Miami. – Reuters