Cryptocurrency rally rumbles on: Bitcoin and ether hit new all-time highs as traders big and small continue to pile in
- Bitcoin rose to $68,564 and ether hit $4,825 in Asia trading overnight
- Inflows into the two biggest coins bolstered by institutional investors
Bitcoin and ether reached record highs in Asia trading overnight as investors continue to pour money into the world’s two biggest cryptocurrencies.
Analysts attributed the ongoing rally in crypto to its adoption by larger investors like pension schemes and the view that they can act as an inflationary hedge, as bitcoin rose as high as $68,564 and ether hit $4,825.
Bitcoin and ether have since settled back to $67,857 and $4,787, with both having more than doubled since June and added nearly 70 per cent against the dollar since the start of October.
Bitcoin and ether his record highs in overnight trading is Asia
In sterling terms, bitcoin and ether are currently trading at £49,982 and £3,527, respectively.
Momentum in cryptocurrency prices has been gathering pace since the launch of a bitcoin futures exchange-traded fund in the US last month.
Inflows into bitcoin products and funds have hit a record $6.4billion so far this year, data from digital asset manager CoinShares suggests, and totalled $95million last week.
‘We’re getting the feeling that the market has shifted,’ said Matthew Dibb, chief operating officer at Singapore-based crypto asset manager Stack Funds, pointing to a sharp pick up in demand from large investors and even pension funds.
‘People are now figuring out that not having any exposure, even a small amount, is probably not a good thing moving forward, so they’re having to allocate at this price.’
Crypto prices have also been buoyed by digital currency manager Grayscale’s decision to convert its flagship bitcoin trust into a spot-bitcoin ETF.
However, the cost of funding crypto purchases has also crept higher in recent days, which analysts say has previously been a precursor to a pullback in asset prices.
‘Crypto is where the fast money is at,’ said Chris Weston, head of research at brokerage Pepperstone.
‘[Ether] is trending like a dream and I’d be long and strong here.’