Record cryptocurrencies: why they rise and how long they can last

The criptovalute back to talk and above all updating historical records. This time the protagonist is not the most renowned Bitcoin , which stops at 56 thousand dollars, below the recent records (64 thousand), but its sister Ethereum , which has broken through the threshold of 3 thousand dollars, reaching 3,361 dollars. A rally that continues this morning with an increase of 8.7%, which brings the 7-day performance to + 32% and the market capitalization to 389 billion dollars.

But what is driving this rally? Why didn’t Bitcoin and then Ethereum stop the rush ? What prospects are there for this digital child asset?

It must be said that the leap made by Ethereum “compensates” for the greater momentum recorded by Bitcoin in the previous months, therefore a realignment of the relative market capitalizations: today the capitalization of Bitcoin is about 47% of the entire market from the previous 72%, against the 15.5% of the Ethereum which previously weighed 10.5%.

Ethereum also offers a quid more than Bitcoin , because it was created to power the blockchain platform of the same name, where the EIB is also placing 2-year digital bonds.

And then there is the syndrome of “Donald Duck”, a well-known antagonist of Uncle Scrooge and his gold coins. According to experts , Millennials would be little attracted to gold , an asset considered somewhat ancient and not very suitable for the current era, the bit society. This was explained by the co-founder of Ethereum, the Russian Vitalik Buterin, who stated: “One of the most underestimated and I have always believed bullish factors is the fact that gold is boring, and the youngest if they are noticing it. Now, those 9 trillion dollars will have to go somewhere else ”.

In addition, digital currencies would offer a great advantage over the precious metal in terms of storage, storage and interest to be paid on the deposit.

In other times and with the highly expansive policy of the main central banks of the globe we would have witnessed an important rall of the metal, which instead remains “quiet” at $ 1,785.87 an ounce, with a decreasing trend opposed to that of cryptocurrencies, which they are continuing the rally in great leaps. If this is true, the rally could last as long as central banks maintain an expansionary policy, and then fall back as the era of zero rates ends.

You May Also Like

Wilbert Price

About the Author: Wilbert Price

Leave a Reply

Your email address will not be published. Required fields are marked *