Wednesday 20th October 2021
Course shoots up
Bitcoin cracks record high
Bitcoin rises above $ 66,000 for the first time. This adds up to the plus of the past four weeks to around 50 percent. The crypto project will be “socially acceptable,” says an analyst.
Bitcoin has hit a new all-time high. The price shot to $ 66,359, but then went back down a little. Bitcoin reached its all-time high in April. The price was apparently driven by the successful start of the first exchange-traded Bitcoin fund in the USA. However, this does not represent the Bitcoin itself, but futures contracts on the cryptocurrency.
“The price fantasies of investors have now received new nourishment,” said Timo Emden from Emden Research. The gates of the ETF market have been open for the crypto market since Tuesday at the latest. According to Emden, the first Bitcoin ETF on Wall Street could finally make cryptocurrencies “socially acceptable”. This is a step towards the mass acceptance of Bitcoin, says UBS analyst Mark Haefele. “While we see growth opportunities in the technology underlying digital assets, we believe direct exposure to cryptocurrencies is only appropriate for very risk-tolerant and speculative investors.”
This year, Bitcoin has gained a whopping 120 percent. The main reasons for this are the high global liquidity and low interest rates. Many investors don’t know what to do with their money. For some, pure gambling plays a role in Bitcoin, others see the cryptocurrency on its way into the mainstream. You therefore expect further demand and even more price gains. In addition, Bitcoin is benefiting from the high global inflation, instead of investing in gold, some investors are investing in cryptocurrencies.
Bitcoin ETF at the start
The course of the Bitcoin price always resembles a roller coaster ride. It fell below $ 30,000 in June. He suffered from criticism of the immense power consumption when scooping new bitcoins and the actions of the Chinese authorities.
On Tuesday, the ProShares Bitcoin Strategy ETF closed its first day of trading on Wall Street with a plus of 2.5 percent at $ 41.91. However, the largest part of the trading volume so far on the account of short-term investors and small investors, said analyst Jeffrey Halley of the brokerage company Oanda. “While a regulated exchange-traded fund based on regulated futures would fit the mandates of many institutional investors well, I suspect they will wait a while before venturing into the deep end.”