Cryptocurrency Buying Frenzy Continues
According to TradingView data, the second-largest cryptocurrency in the world jumped to $1,929 during today’s trading session to record a new all-time high. Since the start of the year, the Ethereum price has surged about 160%, compared to Bitcoin’s 78% rise during the same period.
However, the Bitcoin rally is what’s been driving Ethereum lately as the number one cryptocurrency broke above $52,000 for the first time ever. The entire cryptocurrency market has screamed higher lately after major companies around the globe, including Tesla and Mastercard, made moves that are positive for the cryptocurrency ecosystem.
“The ether slingshot is in motion, with the number 2 coin looking cheap and posed to surge relative to bitcoin’s $52k level,” said Jehan Chu, co-founder of cryptocurrency VC and trading firm Kenetic Capital.
Although Ethereum’s latest rally was not driven by a single factor, its supporters believe that the long-anticipated Ethereum 2.0 upgrade could help the cryptocurrency grow. The upgrade is not completed yet.
In the meantime, the market analysts continue to speculate for how long Bitcoin can trade in the bullish market environment. One fund manager claimed that Bitcoin could go as high as $1 million, in the long run, to serve as the world’s reserve currency, according to CNBC.
However, JP Morgan recently voiced concerns about certain risks ahead if Bitcoin continues to grow. Co-founder of Morgan Creek Digital Assets, Anthony Pompliano, said the cryptocurrency could touch $500,000 by 2030.
“I think that bitcoin will eventually rise to become the global reserve currency. I think bitcoin will eventually be much much larger than the gold market cap,” Pompliano said.
Analysts and investors have been talking about several reasons behind Bitcoin’s massive rally. First of all, the number of institutional and retail investors that buy Bitcoin is now significantly higher, and large corporations have also been showing an increased interest in the cryptocurrency.
Furthermore, central banks around the world have been employing easy monetary policies that include low-interest rates to help economies recover from the devastating coronavirus pandemic.
Both Bitcoin and Ethereum surged to record highs today thanks to the increasing number of major global companies that are making bold moves toward mass cryptocurrency adoption.
About the Author
Avi Ben Ezra is the CTO and Co-founder of SnatchBot and SnatchApp (Snatch Group Limited). He leads the Group’s long-term technology vision and is responsible for running all facets of the tech business which includes being the architect of the platforms and UI interfaces.