Sydney, Nov 8 (BUS): Bitcoin surged to a two-and-a-half week high on Monday, and Ether hit a new record as the cryptocurrency surged amid a flurry of momentum, flows, positive news and inflation fears.
Bitcoin was last up about 3% at $65,121 and ether, which underpins the ethereum network, remained at a record high of $4,711, according to Reuters.
Ether is up 57% since the start of October, and Bitcoin is up nearly 50% as investors hail the launch of a US exchange-traded fund (ETF) based on Bitcoin futures last month, seeking exposure to an asset class sometimes seen as an inflation hedge. .
Lower real returns as traders prepare for inflation add to the appeal of assets like gold and non-coupon cryptocurrencies, said Kyle Rhoda, analyst at broker IG Markets, adding that the mood in the sector was also good.
“Financial institutions want to be a part of it, and regulators don’t want to clamp down on them too much,” he said. “We’re almost past the inflection point, where you’re part of the system and it’s going to be very, very difficult to get rid of.”
In recent weeks, Australia’s largest bank has said it will offer cryptocurrency trading to retail clients, the Singaporean authorities have sounded positive about the asset class, and the spillover effects of positive sentiment in equities have also led to support.
Last week, New York Mayor-elect Eric Adams said he would take his first three bitcoin salaries and indicated his intention to make his city the “centre of the cryptocurrency industry” following a similar pledge by the mayor of Miami.
HF