At the auction on Wednesday, October 20, the bitcoin rate updated its historical maximum.

The cost of an electronic coin rose by 7% and for the first time during the entire observation period reached $ 66.93 thousand.

Following Bitcoin, other cryptocurrencies showed similar dynamics.

So, for example, Ethereum rose by 8.2% - to $ 4.1 thousand, Ripple - by 6.3%, to $ 1.15, and Binance Coin - by 3.9%, to $ 504.9.

The total value of all cryptocurrencies over the past day has grown by almost $ 155 billion and at the moment has risen above $ 2.64 trillion.

Such data is provided by the CoinMarketCap portal.

As the director of the Binance crypto exchange in Eastern Europe, Gleb Kostarev, said in an interview with RT, the launch of the first bitcoin ETF became the reason for the sharp rise in the price of digital coins.

We are talking about a special fund, whose securities are traded on the exchange at the bitcoin price.

The corresponding trading started on October 19 on the stock exchange in New York.

“For the cryptocurrency industry, this is one of the main events of 2021.

I think that in the near future we will see a large influx of retail and institutional investors who were previously afraid of investing in bitcoin due to the not entirely transparent regulation of the industry and the difficulty of entering the market, ”said Kostarev.

As the specialist explained, with the help of ETFs, retail investors will have access to trading electronic coins directly through a regular brokerage account.

As a result, there will be no need to store digital assets on cryptocurrency platforms.

It is noteworthy that after the launch of the ETF, investors began to massively buy cryptocurrencies.

As a result, the stocks of bitcoins on the trading floors of the world fell to a three-year low.

This is evidenced by data from the analytical company CryptoQuant.

As Alexander Khvoinitsky, the director of development for the cryptobank Chatex in the CIS, suggested in an interview with RT, due to the interest of investors in the new instrument, the inflow of cash investments in digital coins may increase significantly in the near future.

Under these conditions, the bitcoin rate is able to update new records by the end of the year, the specialist is sure.

“If there is no serious bad news for the market, then by the New Year the price of bitcoin may exceed the level of $ 70-75 thousand or even reach $ 100 thousand, as many expected a year ago.

However, everything will depend on the external news and event background, ”Khvoinitskiy emphasized.

A similar point of view is shared by the head of the analytical department of AMarkets Artyom Deev.

In his opinion, further growth in the value of digital coins may be limited in the event of tightening regulation of the cryptocurrency industry in different countries.

“In my opinion, it is still difficult to say for sure how long the observed rise in the price of cryptocurrencies will last.

The fact is that during almost the entire year for the crypto market, an extremely negative background was formed, associated with the strengthening of regulation of digital assets in different states, and especially, of course, in China, ”the specialist emphasized.

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Recall that in the spring, Beijing launched an active struggle with the electronic coin market. For example, in May, the People's Bank of China banned financial institutions and companies from accepting cryptocurrencies as a means of payment and providing services related to digital assets. Moreover, in June, the regulator demanded that credit institutions and payment operators in the PRC strengthen control over customer operations to suppress transactions and transactions with bitcoin and its analogues. At the same time, the Chinese authorities began to fight against mining in the country.

Note that bitcoin exists on the basis of blockchain technology - a single database that contains information about all previous transactions.

The emission of bitcoins occurs due to mining - solving complex mathematical problems and the appearance of a new block in the blockchain network.

Each such block is an array of data, where information about transactions carried out after the creation of the previous block is entered.

As a reward for solving the problem, miners receive bitcoins.

According to Cambridge experts, even before the official bans, China accounted for at least 50% of the world's mining capacity.

Against this background, restrictive actions by Beijing provoked a sharp collapse in Bitcoin and a number of other cryptocurrencies.

Although today the digital asset market has already fully recovered from losses, investing in cryptocurrencies is still risky, Artyom Deev believes.

First of all, the specialist explains this by the likelihood of new fluctuations in the market.

“The dynamics of bitcoin always shows growth above previous records, and then a correction occurs.

The same thing happens with many other assets in the financial market.

This volatility will gradually decrease, and in the future, cryptocurrencies can become an alternative to the usual exchange instruments.

However, investments in cryptocurrencies still pose a risk, ”the specialist noted.