Today, the price of the most popular cryptocurrency has beaten 22 thousand USD and seems to be close to 23 thousand USD. It is a new historical record, which arouses emotions of people involved in crypto when more financial institutions join the trend.
The price of bitcoin has increased by almost 30 percent over the last week from about 18 thousand USD to over 22.5 thousand USD today. However, the biggest increases have been observed since Wednesday, December 16th. Only in less than two days, because until this morning, the price of BTC has increased by 16%. As a result, the capitalization of the entire bitcoin market increased to USD 421 billion. What is more, the capitalization of Grayscale Bitcoin Trust funds rose to USD 11.5 billion. By comparison, the largest gold fund GLD has USD 69.66 billion under management, about 6 times more. Since bitcoin is considered by many to be digital gold, the race of these funds can be very interesting.
Another positive development for the world of digital currencies could be the CME's announcement of the introduction of Ethereum Futures (ETH) next year, three years after the introduction of BTC futures. Representatives of the world's largest contracts and options exchange, based in Chicago, point out that interest in bitcoin-based products is growing strongly. Hence the decision to introduce derivatives to trading on ETH. Thanks to this, CME clients will not only be able to trade on the regulated market, but will also be able to hedge their positions with futures contracts, according to Tim McCourt from CME. Ethereum is the second largest market after bitcoin and in terms of capitalization (nearly 75 billion USD), and in terms of daily volume.
Such news seems to be extremely optimistic for crypto enthusiasts, as it may indicate market maturity. This opens the gates for financial institutions and other market participants to trade and invest in instruments based not only on bitcoin price. Since 12 December, the ETH/USD exchange rate has increased by 22% and since the March low by more than 620%. In comparison, the BTC/USD exchange rate at that time has increased by more than 400%.
Daniel Kostecki, Chief Analyst Conotoxia Ltd.
Materials, analysis and opinions contained, referenced or provided herein are intended solely for informational and educational purposes. Personal opinion of the author does not represent and should not be constructed as a statement or an investment advice made by Conotoxia Ltd. All indiscriminate reliance on illustrative or informational materials may lead to losses. Past performance is not a reliable indicator of future results.
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