Bitcoin and Ethereum prices are displaying considerable positive momentum today, with BTC soaring above $20k and Ethereum rallying past $1,400, following minimal movement last week and a sluggish start on Monday. At $957 billion right now, the market capitalization of all cryptocurrencies is up today by 3%. The markets are undeniably very bullish right now. Let’s examine the notable news influencing today’s price movement.
Summary:
- Both Bitcoin and Ethereum exhibit strong bullish price movement, with BTC reaching a top above $20k and ETH aiming for $1,500.
- The rising link between Bitcoin and Gold positions it as a safe haven for investors and a hedge against inflation.
- Legislators in the UK want to classify cryptocurrencies as regulated financial instruments.
- Ethereum reached a peak above $1,400 for the first time since September, breaking its previous month’s high.
- Today’s unexpectedly strong price movement for crypto markets shows that there is still plenty of room for crypto assets to break out of their current bear trend and begin a bullish cycle.
General Market News Update
Today, several papers have emphasized how Bitcoin behaves like Gold, strengthening the similarity between the two assets. As reported by Cointelegraph:
“Bitcoin’s correlation with gold — which is commonly viewed as an inflation hedge — has been on the rise this year, hitting its highest yearly levels in early October.”
BTC is positioned to become a hedge against inflation compared to the Dollar, which has been struggling this year despite the Fed’s aggressive monetary policy and interest rate hikes. This is due to the correlation with Gold.
The substantial increase in the number of coins moving from exchanges to personal wallets indicates that investors are aiming to create long-term holdings in BTC and are prepared to hold the cryptocurrency for several months.
Other news includes a vote by UK MPs to classify cryptocurrencies as regulated financial instruments. This implies that cryptocurrencies will be handled similarly to other types of financial assets, resulting in the first regulation of the asset class. Even if a sizable percentage of the community may be against regulation, if the UK government acknowledges cryptocurrencies as financial instruments, it will provide them exposure to retail funds and push them to a new level.
Ethereum reached a milestone today of over $1,400, breaking its previous month’s high. The SEC views Ethereum as a security, which has been the subject of a contentious regulatory discussion. Despite the news, ETH nevertheless managed to increase 10% today, indicating that investors are still positive on the digital currency.
Furthermore, Ethereum’s cutting-edge technology has a big advantage over Bitcoin as the largest proof-of-stake network. Thus, it wouldn’t be unexpected if ETH one day overtook BTC in terms of market value. Ethereum’s staking consensus model eliminates the need for expensive mining equipment to protect its network, unlike Bitcoin, which continues to consume a significant amount of energy that is bad for the environment.
Today is a thrilling day for cryptocurrencies, in contrast to yesterday, as BTC and ETH keep on advancing. The bull market may or may not last the rest of the week, but Ethereum’s unexpected surge shows that there is still sufficient momentum in the market for meaningful price movement.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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