Bitcoin, Ether Reach New Highs As Flows Flock To Crypto

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A representation of Ethereum virtual cryptocurrency is seen among representations of other cryptocurrencies in this photo illustration taken on June 14, 2021. REUTERS / Edgar Su / Illustration

Bitcoin exceeds $ 68,000; Ether Approaches $ 5,000 CoinGecko Places Crypto Market Cap at Over $ 3 Trillion Flows Increase as Momentum Accelerates

SYDNEY, Nov. 9 (Reuters) – Bitcoin and ether hit record highs in Asian trading on Tuesday, with enthusiasm for cryptocurrency adoption and concern over inflation boosting momentum and flows in the asset class.

Bitcoin hit $ 68,564 in Asian afternoon trading and Ether, the second largest cryptocurrency by market value, had previously hit $ 4,825.

Both have more than doubled since June and have risen nearly 70% against the dollar since early October.

“We have a feeling the market has changed,” said Matthew Dibb, COO of Singapore-based crypto asset manager Stack Funds, highlighting a surge in demand from large investors and even pension funds. .

“People are now realizing that not having exposure, even a small amount, is probably not a good thing for the future, so they have to allocate at that price,” he said.

Market momentum has grown since the launch of a bitcoin-based exchange-traded fund in the United States last month, raising expectations of flow-induced gains. Read more

Entries into bitcoin products and funds have hit a record $ 6.4 billion so far this year, data from digital asset manager CoinShares showed, and totaled $ 95 million last week. Read more

Other positive news has also helped, including plans by Grayscale, the world’s largest digital currency manager, to convert its flagship bitcoin trust (GBTC.PK) into a cash exchange-traded fund. Last week, Grayscale also requested the listing of a “future of finance” fund that would follow companies involved in the growing digital economy.

“Crypto is where the quick money is,” said Chris Weston, head of research at brokerage Pepperstone. “(Ether) is evolving like a dream and I would be long and strong here,” he added.

“Clients have been net for a long time, with 79% of open positions held for a long time, and I can sense that the $ 5,000 party could start soon.”

However, others have signaled some near-term caution in bitcoin as the cost of funding long positions has increased in recent days, according to trading platform BitMEX – sometimes a precursor to a pullback.

Still, the moves so far have lifted the token more than 1,680% from its March 2020 lows and helped push the total cryptocurrency market cap above $ 3 trillion, according to the. crypto price and the CoinGecko data aggregator.

CoinMarketCap has it slightly below $ 2.94 trillion. Either way, true believers, or “hodlers” in crypto market terminology, have felt justified and remain bullish.

“They threw it all at the beast and it’s still moving,” Brian Roemmele, payments strategist and sometimes Around the Coin podcast host Brian Roemmele, said on Twitter. “Next stop: #Bitcoin $ 72,000.”

(This story corrected Roemmele’s spelling in the last paragraph)

Reporting by Tom Westbrook; Editing by Rosalba O’Brien, Lincoln Feast, Muralikumar Anantharaman

Our Standards: Thomson Reuters Trust Principles.

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