Trading News

The cryptoindustry has presented investors with an incredible gift today: Bitcoin has renewed its all-time high and at the time of publication of the article (November 9, 2021) the price was as high as $68,641 per virtual coin. If you look at the annual statistics, the world's main cryptocurrency has grown over 340 percent, with its market capitalization reaching an all-time high of $1.3 trillion.

It is worth noting that other cryptocurrencies are demonstrating impressive growth. Along with Bitcoin, for example, Ether also showed excellent results, with its price reaching $4,857. The virtual currency has grown by 960 percent over the year.

Some experts believe the market momentum is due to the launch of a bitcoin futures exchange-traded fund in the United States. It happened just a few weeks ago but the market immediately reacted to the event, allowing investors to increase their investment income. Stack Funds confirms the huge interest from large investors, many of which are institutional ones, pension funds included. After all, this is exactly what the cryptocurrency industry has been waiting for: to strengthen its position digital gold only needed to win the recognition and attention of the biggest investment sharks, which would attract those who still felt uncertain about it.

 Analysts believe that the value of one Bitcoin may well cross the $100,000 mark. At the same time, experts from the J.P. Morgan holding company believe that the most fair and reasonable price for one coin is $35,000. In their opinion, this is exactly how much BTC can cost relative to the gold price since the volatility of the first asset is 4 times higher than that of the second.

It is noteworthy that amid its value growth large holders of BTC, those who have between 10 and 100 thousand dollars in their accounts, started to actively increase their investments. It is estimated that such big players alone have increased the capitalization by $2.8 billion on average in just 5 days.

It is likely that in the coming weeks BTC will continue to grow steadily, pushing up other cryptocurrencies. The thing is that next week Bitcoin is scheduled to have a global update of the Taproot software. The developers promise to strengthen the system for protecting confidential information and increase the efficiency of transactions, which will allow everyone to see the real benefits and prospects of smart contracts.

Market trends

Despite the contradictory statements of many skeptics, most large and retail investors do see Bitcoin as a means of saving personal funds and an inflation-protected asset. However, a sharp pullback from all-time highs may cause a huge panic among retail investors, which will inevitably affect further price movement. Moreover, institutional investors put very high demands on cryptocurrencies. It is to their advantage that the main virtual coins are constantly updating their historical highs and the total market capitalization continues to grow.

Some large investors, focused exclusively on investing in traditional, time-tested assets, note that trading cryptocurrency will always be associated with incredibly high risks since it is simply impossible to get a return of 100 percent per year. That is why the cryptocurrency market where a serious correction can occur at any moment is considered to be easily manipulated, and investors should be aware of this.

It is safe to say that there is now significant tension in the market. Along with the main cryptocurrency, other so-called junk virtual assets are becoming more expensive. Their growth in value is stimulated by unhealthy speculative demand, and this will sooner or later lead to a market correction.