Bitcoin Price Hits Three-Week High, Ethereum Jumps To Record
Bitcoin price reached $65,121 on Monday –up nearly 20% in the last month– while Ether climbed to a $4,700 record on the previous day, signaling a solid market setup and...
Bitcoin price reached $65,121 on Monday –up nearly 20% in the last month– while Ether climbed to a $4,700 record on the previous day, signaling a solid market setup and the strong cryptocurrency momentum built in October.
While relatively steep and sudden, experts agree that bitcoin’s uptick does not seem to be leverage-driven, but it is rather the result of increasing demand on the spot market, where there is currently very little sell-side liquidity.
“As Bitcoin exchange balance is at a 3 year low while long-term holder supply is at an all-time high, there are simply too few bitcoins available to keep up with the demand - the right conditions for the price to soar,” Mikkel Morch, executive director at crypto hedge fund ARK36, says.
In this outlook, bitcoin price is bound to hit $70,000 and continue to break records throughout the month. “Such a possibility is strong especially that November historically was, on average, the best performing month for Bitcoin.”
Still, volatility will likely surge based on price jumps and hot market sentiment, so “Investors should therefore brace themselves for an exciting month with strong upward momentum yet not without temporary corrections and sudden drops to retest the support.”
As reported by MarketWatch, Ethereum, the world’s second-biggest cryptocurrency by market cap, “has steadily notched a string of all-time highs over the past week and a half, since it topped $4,400 for the first time Oct. 28.”
Kyle Rodda, analyst at broker IG Markets said, “Financial institutions want to be a part of it, regulators don't want to clamp down on it too much. We're almost past the inflection point, where it's part of the system and it's going to be very, very hard to extricate it.”
The growth of both cryptocurrencies is believed to follow increasing enthusiasm on Decentralized Finance (DeFi) with Ethereum being a big player with its network.
Martha Reyes, Head of Research at digital asset prime brokerage and exchange Bequant, says that “Positive signs such as net outflows from exchanges continues intact while this rally hasn’t seen a big jump in funding rates or open interest. Further institutional adoption such as Australia’s Commonwealth Bank news likely boosted interest in Asia.”
Ethereum, in particular, has increased 31% in the last month and has soared by 535% this year.