Bitcoin and Ether Surge Amid Continued Crypto Mania

Bitcoin and Ether experienced significant gains on Wednesday, underscoring the ongoing frenzy within the investment community surrounding cryptocurrencies, Reuters news report said.
Bitcoin exchangeBitcoin surged by as much as 6.8 percent during volatile trading, reaching a session high of $67,645. This uptick followed a 6 percent dip on Tuesday from its earlier record high of over $69,000, settling at $66,896, marking a 5.7 percent increase.

Ether, on the other hand, saw a notable leap of 9.8 percent, reaching its highest level since January 2022. It closed at $3,827, reflecting an 8.6 percent surge.

The surge in Bitcoin, which has already seen a remarkable 55 percent increase since the beginning of the year, has been attributed to a flurry of investments pouring into U.S. spot exchange-traded crypto products. Additionally, the prospect of global interest rates declining has added fuel to the crypto fire.

Lennix Lai, the global chief commercial officer at crypto exchange OKX, highlighted the influx of billions of dollars into Exchange-Traded Funds (ETFs) in recent weeks. He emphasized that the market is further buoyed by optimism surrounding an impending Ethereum upgrade and the Bitcoin “halving,” a mechanism that slows the pace of Bitcoin creation.

“The trend also indicates an elevated level of mainstream acceptance of bitcoin, perhaps more than ever before,” Lai added.

The approval of 11 spot Bitcoin ETFs by the U.S. Securities and Exchange Commission in late January marked a significant milestone for the crypto industry, signaling a resurgence after an 18-month-long period of crypto winter marred by corporate bankruptcies and scandals.

Institutional investors, once cautious of the volatility associated with cryptocurrencies, have begun committing long-term investments, potentially bolstering the current rally.

The optimism surrounding Bitcoin has also spilled over to other digital tokens, particularly Ether, which has surged over 60 percent since the year began. However, skeptics caution against the speculative nature of these assets.

Following Tuesday’s record high, Bitcoin witnessed a sharp reversal, plunging over 10 percent and dipping below the $60,000 threshold. Matt Simpson, senior market analyst at City Index, described this behavior as characteristic of Bitcoin’s volatility, noting that it often oscillates erratically after reaching new highs.

Jim Reid, a strategist at Deutsche Bank, highlighted that Bitcoin still falls short of its all-time high in real terms, adjusted for inflation. “Consumer prices are up by over 10 percent since the previous November 2021 peak, so in real terms, that would be above $75,000 in today’s prices,” Reid explained.

Related News

Latest News

Latest News