Bitcoin is trading near $66k today before noon and seems to be approaching its record high, which was set in the $66.7k region. Thus, the potential return on the BTC/USD market since the beginning of the year reaches 125 percent, and while it seems impressive, it may be relatively small compared to the ETH/USD market.
After all, ETH/USD has risen more than 500 percent since January 2021. Meanwhile, just for the most recent quarter, the rallies seem similar, as bitcoin is up about 49 percent and ethereum is up 51 percent.
U.S. grounds for optimism in the cryptocurrency market
It seems that cryptocurrencies may be helped by fairly good sentiment from institutional investors, who are taking well the introduction of bitcoin-linked ETFs, but there is also speculation about a U.S. ETH ETF. The SEC could decide by the end of the year what's next for instruments that give Wall Street capital broad access to cryptocurrencies.
Moreover, several mayors of cities in the US, including New York and Miami, have declared their willingness to be paid in bitcoin, which may benefit the adoption of BTC in the real economy and the real world. The capitalization of the entire cryptocurrency market is approaching $3 trillion.
Central banks cool down rate hikes expectations, silver gains
Silver prices rose to $24 in the second week of November. Lower bond yields appear to have fueled appetite for precious metals, among others, when the world's major central banks chose not to raise interest rates.
U.S. 10-year bond yields fell below 1.5 percent, a level not seen in more than a month, when the Federal Reserve announced the start of tapering its asset purchase program while stressing that rate hikes would take time.
The Bank of England decided to leave interest rates and its quantitative easing program unchanged, defying expectations that it would be the first major central bank to raise interest rates.
ECB President Christine Lagarde also dismissed hopes of a rate hike, saying a rate hike in 2022 is highly unlikely.
Daniel Kostecki, Director of the Polish branch of Conotoxia Ltd. (Forex service)
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