Photographer: Tomohiro Ohsumi / Bloomberg
Photographer: Tomohiro Ohsumi / Bloomberg
The recent pendulum of Bitcoin has focused the spotlight on cryptocurrencies on other digital currencies, including Ether, whose profits this year surpassed those of its larger competitor.
The world’s largest crypto-currency rose 9% to $ 37,154.02 at 9:58 a.m. in London following a major reign of terror earlier in January. The comparative calm of late could encourage crypto enthusiasts to chase the momentum in currencies like Ether, which rose 87% in 2021 compared to Bitcoin’s 28% advance.
“Bitcoin has been within a range for the past few weeks, giving time for capital to turn” into other digital assets, said Vijay Ayyar, head of business development at the crypto exchange Luno in Singapore.
There are many questions about the drivers of the parabolic boom in Bitcoin to nearly $ 42,000 on January 8 before a sharp setback. A a study by Bloomberg Economics suggests that animal spirits make up the bulk of the move, while the alleged role of Bitcoin as a hedge against risks such as inflation is secondary.
According to Seamus Donoghue, vice president of sales and business development of digital infrastructure provider Metaco, a backdrop of stimulus to counter the impact of the pandemic remains positive for Bitcoin and other cryptocurrencies.
At the same time, JPMorgan Chase & Co. strategists said that $ 40,000 is a key level for Bitcoin, indicating the risk of a further decline unless it soon rises above the price. Bitcoin has fallen by 7% since the January 8 record, raising the prospect of an exodus of speculative investors.
The Ethereum blockchain is popular for so-called decentralized finance and is also moving towards a network upgrade. Commentators argue that these trends helped Ether.
Ether climbed to 13.3% and traded at around $ 1,382 in London at 10:01. The Bloomberg Galaxy Crypto Index added about 13%.
– With help from Mark Cranfield and Joanna Ossinger