Cryptocurrencies, the turnover exceeds 3 trilion. Driven by “traditional” finance

Bitcoin reached a new record at 66,360 dollars (+ 6.4%), for Ethereum growth of 2.8% to 4,722 dollars. According to analysts, virtual currencies attract investors who aim to protect themselves from inflation, especially in Europe and North America

08 Nov 2021

Over three thousand (3.007) billion dollars: this is the value of the cryptocurrency market for the first time, thanks to the greater interest of traditional finance and investors, attracted by the strong rises in currencies. This was stated by CoinGecko, which monitors over 10,000 cryptocurrencies.

The analysis points out, in particular, that Bitcoin (which represents over 40% of the market) rises 6.4% to $ 65,906, after updating the all-time high to $ 66,360, while Ethereum, the second largest cryptocurrency ( just under 20% of the market), rose by 2.8% to 4,722 dollars, after hitting a maximum of 4,768 dollars. As for the smaller cryptocurrencies, Solana is down to $ 243 and Binance Coin is down to $ 642.

Index of topics

• A way to protect yourself from inflation

• DeFi news

A way to protect yourself from inflation?

SwissQuote analysts speak of "a market that is swelling at an impressive rate", with a movement driven "a little by speculation and a little by real reasons", for example the launch on the American market of an ETF linked to Bitcoin, which allows investors to bet on cryptocurrency. Furthermore, unlike traditional currencies, the number of bitcoins is fixed and unchangeable (21 million, which are issued gradually). Finally, according to some investors, cryptocurrencies, due to their characteristics, can be a way to protect themselves from inflation, which is on the rise in Europe and North America. That said, there is no shortage of concerns: "The risks are high due to volatility and pressure from regulators," said the experts, who fear "a bubble like the internet in the 2000s."

Cryptocurrencies are known for their volatile price swings, with movements of up to 20% more or less relatively common. Mikkel Morch, executive director of the crypto hedge fund Ark36, said a price of $ 70,000 per bitcoin now "looks imminent." "Importantly, the increase does not appear to be driven by leverage, but rather stems from increased demand on the spot market, where there is currently very little liquidity on the selling side," Morch said in a statement.

DeFi news

Meanwhile, it comes amid growing enthusiasm for DeFi, or decentralized finance, a new trend in the cryptocurrency market that seeks to build financial applications such as lending and trading on the blockchain. Ethereum is a key player in DeFi. Some of the largest DeFi services, including the decentralized Uniswap exchange and the Aave lending platform, run on the Ethereum network. However, DeFi has attracted the attention of regulators lately and experts have warned that a crackdown is imminent. Ethereum is also the backbone of many non-fungible tokens, or NFTs, which are like digital receipts that keep a record of ownership of rare items such as online art.

Leave a Reply

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