Because Bitcoin is back on the rise
What Happens to Bitcoin. Facts, numbers, comments and analysis
Fly the bitcoin that scores the highest rise since last July.
The digital currency rose 7.11% to $ 55,162.92 on Wednesday ( the high since mid-May ), adding $ 3,661.73 to its previous close.
The world's largest and best-known cryptocurrency by market value rose 98.9% from a year's low of $ 27,734 on Jan.4.
Smaller coins, which typically move in line with bitcoin, have also risen. Ether, the coin linked to the ethereum blockchain network, was up 2.2% to 3,594 and XRP dollars rose slightly by 0.2% to $ 1.0865.
The jump follows a decline of 7.6% accumulated in September in the wake of fears of a regulatory tightening in the US and China on cryptocurrencies .
However, regulatory concerns eased this week after both Treasury Secretary Janet Yellen and Sec Chairman Gary Gensler said they have no plans to impose restrictions on cryptocurrency trading.
Also, among the positive developments for the market is the news that the US Bank and Bank of America are the latest financial institutions to embrace cryptocurrencies.
All the details.
SPLIT THE BITCOIN PRICE
Bitcoin's price jumped 10% to more than $ 55,000 on Wednesday, hitting its highest level in nearly five months. Its market cap hit $ 1 trillion for the first time since May, according to crypto-data website CoinGecko.
DRAGGING OTHER CRYPTOCURRENCIES
While still around 15% below its all-time high in April, the largest cryptocurrency in the world far outstripped gains in the market on Wednesday. It also dragged ether, Cardano's ada and binance coin up around 6%, 2% and 1% respectively.
THE THRUST GIVEN BY SOROS
The billionaire philanthropist George Soros also helped push the headlines yesterday.
Soros Fund management confirmed at a Bloomberg summit that the fund is trading bitcoin, as reported Wednesday. "We have some coins – not many," said Dawn Fitzpatrick, the fund's chief executive.
AND FROM BANKS
For some, the further push came with assurances from Fed chairman Jerome Powell, who said he "has no intention" of banning cryptocurrencies.
Additionally, fueling bullish sentiment, Bank of America launched its cryptocurrency research coverage on Monday, calling the nascent market “too big to ignore” in a note to clients. Although they acknowledged that bitcoin's volatility is still high, analysts said the cryptocurrency is showing signs of maturation which should allow it to become more common in investment portfolios.
US Bancorp, the nation's fifth largest bank by assets, also announced that it has launched a cryptocurrency custody service for institutional investment managers who have private funds in the United States and the Cayman Islands.
THE COMMENT OF THE ANALYSTS
AsReuters reports, Ben McMillan, chief investment officer of IDX Digital Assets, noted that based on an on-chain data analysis, he is seeing a steady increase in the number of new bitcoin addresses, after a huge drop-off in the first half of the year, as well as an increasing number of bitcoins exiting the exchange.
Both factors – new addresses and bitcoin moving away from exchanges – are "structurally bullish indications".
However, McMillan pointed out that while the structural bullish case for bitcoin is strong, "short-term downside risks remain non-trivial."
THE SCENERY
Bitcoin and the broader cryptocurrency market rose to all-time highs during the pandemic in light of inflationary concerns and increased institutional adoption, Forbes recalled . But prices began to plummet in April when Tesla, one of the largest corporate investors in bitcoin, revealed that it had sold most of its holdings.
Last March, the patron Elon Musk had strongly criticized the cryptocurrency, for the heavy consumption of energy that involved its 'mining'. That is the digital extraction of value.
Markets have since struggled to recover due to intensifying regulatory crackdowns in China, partly stemming from similar environmental concerns. The combined market value of the world's cryptocurrencies, at around $ 2.4 trillion on Wednesday, is still around 10% below the peak of $ 2.6 trillion on May 12.
BOFA'S ANALYSIS
Finally, according to Bofa analysts, cryptocurrencies are "the most exciting news on the market in recent years", but their high volatility "could still be a problem for many investors".
In particular, analysts point out in a recent study dedicated to the world of digital currencies, "the market value of Bitcoin exceeds 969 billion dollars, but the whole system is much greater". Ethereum capitalizes 410, Binance Coin almost 73 and Cardano over 70 billion. Bitcoin is worth $ 51,387, with a daily rise of 4.25% and a weekly rise of 21.25%. The prices of Ethereum are also growing (3,471 dollars), up by 2.75% on a daily basis and by 18.77% in the last week. More modest the increases of Binance Coin, which is worth $ 431.58 (+ 0.18% daily and + 25.7% weekly) and Cardano, which stands at $ 2.18 (-1.6% daily and +3.45 % weekly).
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/perche-i-prezzi-del-bitcoin-tornano-a-schizzare/ on Thu, 07 Oct 2021 10:30:36 +0000.