(Bloomberg) — Optimism about digital assets stoked by Bitcoin’s run to a record high has helped push the overall value of cryptocurrencies to an all-time peak of more than $2.7 trillion.
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That’s a climb of about $200 billion from the last high in May for a sector that now spans almost 10,000 coins, according to data from tracker CoinGecko.
The ascent shows how bets on cryptos are spreading beyond Bitcoin amid enthusiasm about more mainstream adoption of digital assets following the launch of the first Bitcoin-linked exchanged-traded fund in the U.S.
Ether — the largest token after Bitcoin — rose as much as 3.3% on Thursday to within striking distance of its highest value of almost $4,400 achieved in May.
Analysis of chart patterns suggests Ether, along with Solana, Polkadot, Tezos and Binance Coin, are all “close to their own breakouts,” strategists at Fundstrat said in a report Wednesday.
Bitcoin hit a peak of almost $67,000 on Wednesday before dipping below $65,000 as of 7:15 a.m. in London on Thursday. The question now is whether the famously volatile asset will push on or succumb to a bout of selling as speculators take profits.
A reversal would likely also dent sentiment in the crypto market as a whole, which suffered a rout mid-year that depressed its value to some $1.3 trillion.
For now bullish sentiment is ascendant. Pankaj Balani, the chief executive officer of crypto-derivatives exchange Delta Exchange, said he expects Bitcoin to outperform other tokens and predicted the largest cryptocurrency will breach $100,000 before year-end.
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Bitcoin Suddenly Looks ‘Overbought’ As Ethereum, Cardano, BNB, XRP, Solana And Dogecoin Join Huge Price Rally
Bitcoin has hit a fresh all-time high today, climbing to just over $67,000 per bitcoin on the Luxembourg-based Bitstamp exchange—more than double where it started 2021.
The bitcoin price has added over 40% over the last 30 days, with other major cryptocurrencies ethereum, cardano, Binance’s BNB, Ripple’s XRP, solana and dogecoin all riding its coattails higher. The combined crypto market has also surpassed its previous all-time high, set in May, breaking $2.6 trillion for the first time.
Ahead of the first U.S. bitcoin futures exchange-traded fund (ETF) launching on the New York Stock Exchange, hedge fund manager Mark Yusko warned the bitcoin price could be due a pullback, calling bitcoin “overbought.”
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“I wouldn’t be surprised by a little consolidation,” Yusko, who’s the chief executive and chief investment officer of Morgan Creek Capital Management, told CNBC, adding he’s “excited” by the ETF approval.
“Look, we’re up 40% this month which is only 15 days old—a ‘pause that refreshes,’ given how overbought we are right now, wouldn’t surprise me. There is some risk of the ‘buy the rumor, sell the news.'”
Bullish bitcoin and crypto traders sent the bitcoin price sharply higher yesterday after ProShare’s bitcoin futures ETF began trading in New York, clocking up a near-5% stock price rise and almost $1 billion in intra-day trading volume.
Yusko predicted there could be some “profit-taking” in the aftermath of the hotly-anticipated bitcoin ETF launch, pointing to bitcoin’s almost 20% price crash following El Salvador’s adoption of bitcoin as legal tender in September, calling it a “mini-crash.”
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However, Yusko has previously said he expects the bitcoin price to climb as high as $250,000 with in the next five years, forecasting bitcoin’s value will by then equal gold—echoing billionaire investor Chamath Palihapitiya who earlier this month said he expects bitcoin to eventually replace gold.
Meanwhile, as bitcoin charges into new territory, some have predicted it will continue to outperform the likes of ethereum, cardano, Binance’s BNB, Ripple’s XRP, solana and dogecoin—most of which have far outpaced bitcoin’s rally over the last year.
“The setup on bitcoin looks very similar to how it was at this time last year, wherein the bellwether outperformed other altcoins and posted a massive rally in the fourth quarter,” Pankaj Balani, the chief executive of crypto derivatives exchange Delta, said in emailed comments.
“We expect bitcoin to outperform other cryptos here and expect to see a six-figure price on bitcoin before the end of this year.”
It’s an exciting time for both cryptocurrency and the market overall, and investors might be wondering whether or not to buy in.
But at least one financial expert says to hold off.
“Usually when an investment hits an all-time high, that is the least ideal time to buy,” Anjali Jariwala, certified financial planner, certified public accountant and founder of Fit Advisors, tells CNBC Make It. “I think it makes sense to wait and see what happens versus buying at an all-time high,” she says.
In this case, that’s mainly due to bitcoin’s history of extreme volatility, Jariwala says. Like all cryptocurrencies, it is susceptible to big price swings.
However, not all financial experts agree.
“It’s still a good time to buy,” Ivory Johnson, certified financial planner, chartered financial consultant and founder of Delancey Wealth Management, tells CNBC Make It.
That’s because interest in the new futures-based bitcoin ETF “shows that bitcoin is being increasingly adopted,” he says. He predicts that as more people adopt bitcoin, the price will continue to go up exponentially.
“As institutional products make bitcoin easier to buy, and investors are comfortable that it is appropriately regulated, there is a greater likelihood of more demand,” Johnson says.
Johnson also says that “it’s a good environment for digital assets” right now because bitcoin supporters see it as a store of value and a hedge against growing concern over inflation. He argues that as the price increases, bitcoin becomes more valuable, making now a good time to buy in despite the high price.
However, remember that it’s always risky to invest in cryptocurrency due to its volatile and speculative nature, Jariwala says. There’s a possibility you could lose your entire investment.
But if you’re still interested in investing, Jariwala suggests considering a buy and hold strategy. Rather than attempting to trade in the short-term, this strategy promotes holding an asset long-term. And again, only invest an amount you can afford to lose, she says. That way, the huge price fluctuations surrounding bitcoin will be easier to stomach.
“The one thing we can be certain about when it comes to bitcoin, and crypto in general, is that there will be volatility,” Jariwala says.
NEW YORK (AP) — Bitcoin jumped to a record Wednesday, topping $66,000 for the first time, as it rides a wave of excitement about getting further accepted by the financial establishment.
Bitcoin was trading at $66,901.30, up 7.6%, as of 10:52 a.m. Eastern time. It’s roared back after sinking below $30,000 during the summer to top its prior record set in April.
That previous all-time high was nearly $64,889, according to CoinDesk.
A day earlier, the first exchange-traded fund linked to Bitcoin attracted huge interest from investors, giving another boost to the surging field of cryptocurrencies