The cryptocurrencies like Bitcoin and Ethereum are gradually gaining acceptance of the investors in the market. Even if there is currently a dearth of conclusive evidence regarding the long-term benefits and drawbacks of cryptocurrency investing, Bitcoin’s rapid ascent has garnered significant attention.
The gradual acceptance of cryptocurrencies is evident from the successful analysis of the valuation of cryptocurrencies like Bitcoin, Ethereum (ether), etc.
Statistics revealed that Bitcoin rallied in volatile trade while ether rose as high as 10% on Wednesday. The crypto mania continued to portray an engaging activity throughout the investment community.
The below statistics reveal the trends followed by cryptocurrencies in the past few quarters:
- Bitcoin rose by as much as 6.8% to a session high of $67,645,
- Bitcoin dropped by 6% on Tuesday, it was last up 5.7% at $66,896.
- Ether, meanwhile, surged by 9.8% to its highest since January 2022. It was last up 8.6% at $3,827.
Due to investor money streaming into U.S. spot exchange-traded crypto products and the possibility that global interest rates may drop, Bitcoin has already soared 55% this year.
According to Lennix Lai, global chief commercial officer of cryptocurrency exchange OKX, billions of dollars have poured into exchange-traded funds (ETFs) in recent weeks. The market is receiving further support from a forecast that includes an Ethereum upgrade and a Bitcoin “halving,” which slows the flow of Bitcoin minting.
The U.S. Securities and Exchange Commission’s approval of eleven spot bitcoin ETFs in late January was a turning point for the industry after an 18-month crypto winter marred by many high-profile firm bankruptcies and scandals.
Even institutional investors, who had previously avoided cryptocurrency because of its volatile and abrupt movements, have also started making long-term investments, which analysts believe may support the most recent surge in prices.
Other digital tokens have also been affected by the current speculations around Bitcoin, especially ether, which is already up more than 60% since the year’s beginning and stands second in overall market value. However, some claim it’s difficult to ignore these assets’ speculative nature. Tuesday saw Bitcoin reach a record high, but it quickly reversed direction and dropped more than 10% below the $60,000 mark.
“It appears to be the typical behavior of bitcoin: it consumes you and then releases you,” stated Matt Simpson, a senior market analyst at City Index.
“Consumer prices are up by over 10% since the previous November 2021 peak, so in real terms, that would be above $75,000 in today’s prices,” said Deutsche Bank strategist Jim Reid.