Photographer: Tomohiro Ohsumi / Bloomberg
Photographer: Tomohiro Ohsumi / Bloomberg
Bitcoin’s recent swings have transformed the spotlight of cryptocurrency into other digital currencies, including Ether, whose gain this year has outperformed its larger rival.
The world’s largest cryptocurrency rose 2.5% to $ 37,154.02 at 9:58 am in London, after large swings in early January. The relative calm of recent times may encourage crypto enthusiasts to seek momentum in currencies like Ether, which increased 87% in 2021 compared to Bitcoin’s 28% advance.
“Bitcoin has been on a track for the past few weeks, which allows time for capital to spin” in other digital assets, said Vijay Ayyar, head of business development with crypto exchange Luno in Singapore.
Questions abound about the drivers of Bitcoin’s parabolic rise to nearly $ 42,000 on January 8, before a sharp downturn. AN Bloomberg Economics study suggests that animal spirits account for most of the movement, while Bitcoin’s alleged role as a hedge against risks like inflation is secondary.
A stimulus scenario to stem the impact of the pandemic remains positive for Bitcoin and other cryptocurrencies, according to Seamus Donoghue, vice president of sales and business development for digital infrastructure provider Metaco.
At the same time, JPMorgan Chase & Co. strategists have said that $ 40,000 is a key level for Bitcoin, signaling the risk of a further fall unless it rises above that price soon. Bitcoin has fallen 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 progressing towards a network update. Commentators argue that these trends helped Ether.
Ether was up 13.3% and was trading at around $ 1,382 as of 10:01 am in London. The Bloomberg Galaxy Crypto Index added about 13%.
– With the help of Mark Cranfield and Joanna Ossinger