Cryptocurrency took off on another ride up the value charts on Monday. Led by Bitcoin (BTC), several digital currencies hit all-time highs in a rally that some crypto pundits claim might be investors trying to lock in on a safeguard against inflation.
The crypto market’s bull ride didn’t end on Monday either. As of midday Tuesday, Bitcoin’s 24-hour trading volume was up 20.48% to a new all-time peak of $68,368. Ethereum’s trading volume was up 18.41%, hitting $4,824 per coin — the first time it’s ever crossed the $4,700 mark. Cardano (ADA) — the fourth most traded cryptocurrency — also saw its trading volume go up 195.80%.
What’s behind the surge?
As you can imagine, cryptocurrency analysts were out in force to explain why the market was turning so bullish. Most experts pointed to the Securities and Exchange Commission’s (SEC) approval of the first cryptocurrency-related ETFs as a major driver.
Juthica Chou, Head of OTC Options Trading for cryptocurrency exchange Kraken, told Yahoo Finance that the approval cannot be underestimated as a major driver for the Bitcoin rally.
“It massively de-risked bitcoin and this space in general,” Chou stated.
Don’t bet the farm
In a price prediction model released earlier this year — when Bitcoin was valued at less than $40,000 per coin — cryptocurrency analyst PlanB actually predicted that Bitcoin would prove to be a better ETF than gold.
On the news of Bitcoin’s shot up, PlanB doubled down on its support of BTC, tweeting “Forget USD and QE [quantitative easing]: #bitcoin = 37 ounces of Gold.”
Forbes reported that by the end of November, PlanB’s model predicts that Bitcoin will reach $98,000 and finish 2021 at $135,000. But before investors run off and bet the farm, PlanB warns that the market could reverse at any time because of regulatory changes or a “black swan” event.
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