Bitcoin and Ethereum prices are displaying strong positive momentum today after little change last week and a sluggish start on Monday, with BTC reaching above $20k and Ethereum rallying past $1,400. The market capitalization of all cryptocurrencies is up 3% today and stands at $957 billion. Without a doubt, the markets are very bullish right now. Let’s examine the essential news that is driving today’s price movement.
Key Notes:
- With BTC reaching a high of $20k and ETH aiming for $1,500, both Bitcoin and Ethereum exhibit strong bullish price activity.
- Bitcoin is positioned as a safe haven for investors and an inflation hedge because of its rising correlation with Gold.
- Legislators in the UK are attempting to legalize cryptocurrencies as financial instruments.
- With a peak above $1,400 for the first time since September, Ethereum smashed its month-long high.
- The abruptly upward price movement in the crypto markets today suggests that there is still plenty of fuel in the assets for them to reverse their bear trend and begin a bullish cycle.
General Market Update
Today, numerous stories have emphasized how Bitcoin behaves similarly to Gold, boosting the link between the two assets. Cointelegraph reports:
“Bitcoin’s correlation with gold — which is commonly viewed as an inflation hedge — has been on the rise this year, hitting its highest yearly levels in early October.”
Inflation has been a problem for the Dollar this year despite the Fed’s aggressive monetary policy and interest rate hikes, and the association with Gold is positioning BTC to become a hedge against it.
Bitcoin’s massive surge in outflows from exchanges to personal wallets is another positive indicator, indicating that investors are eager to create long-term holdings in the cryptocurrency and are prepared to keep the commodity for several months.
In other news, UK lawmakers will decide whether to classify cryptocurrencies as regulated financial instruments. As a result, cryptocurrencies will be handled similarly to different financial assets, and the asset class will be regulated for the first time. Although a substantial segment of the community may be against regulation, if the UK government acknowledges cryptocurrencies as financial instruments, it will provide them exposure to retail funds and propel cryptocurrencies to a new level.
With a peak today above $1,400, Ethereum has surpassed its monthly high. Ethereum has been the subject of a contentious regulatory dispute, and the SEC views it as a security. Despite the news, ETH nevertheless managed to rise 10% today, showing that investors are still optimistic about the cryptocurrency asset.
It wouldn’t be shocking if Ethereum one day overtakes Bitcoin in terms of market valuation because of its largest proof-of-stake network and cutting-edge technology. With its staking consensus model, Ethereum’s network can be protected without the need for expensive mining equipment, unlike Bitcoin, which consumes a significant amount of energy that is bad for the environment.
In contrast to yesterday, today is a thrilling day for cryptocurrencies as BTC and ETH carry on their upward movement. It remains to be seen if the bull market will last the rest of the week, but Ethereum’s unexpected surge shows that there is still plenty of market momentum for meaningful price movement.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any projects.
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