At the auction on Tuesday, November 9, the bitcoin price has renewed its all-time high.
The rate of the electronic coin rose by more than 5% and for the first time during the entire observation period reached $ 68.53 thousand. Such data are provided by the CoinMarketCap portal.
Following Bitcoin, other cryptocurrencies showed similar dynamics.
For example, Ethereum rose in price by 2.4%, to $ 4.84 thousand - the highest level in history.
At the same time, the cost of Litecoin increased to $ 255.
The last time a similar indicator could be observed back in May.
The total value of all cryptocurrencies over the past day has grown by almost $ 100 billion and at the moment was approaching a record $ 3.1 trillion.
This is evidenced by data from the CoinGecko portal.
Note that over the past month, the cost of bitcoin has increased by 25%.
According to experts, the launch of the world's first bitcoin ETF had a positive impact on the cryptocurrency rate.
We are talking about a special fund, the securities of which are traded on the exchange at the bitcoin price.
The corresponding trading started on October 19 on the stock exchange in New York.
“The next historical maximum of the bitcoin rate is the result of a systematic and positive change in the market after the launch of funds.
The cryptocurrency market is growing, and more and more large investors are becoming its participants, "said Gleb Kostarev, director of the Binance crypto exchange in Eastern Europe, in an interview with RT.
The rise in prices for cryptocurrencies is partly due to the actions of world central banks.
Valery Romanyuk, First Vice President of the Russian Association of Cryptoeconomics, Artificial Intelligence and Blockchain (RAKIB), spoke about this in an interview with RT.
As the specialist recalled, in 2020, against the backdrop of the COVID-19 pandemic, the US Federal Reserve announced an unprecedented expansion of the quantitative easing program.
The Federal Reserve began printing dollars and pumping money into the country's financial system to quickly restore the economy.
The European Central Bank (ECB), as well as other regulators of developed countries, began to pursue a similar policy.
“A constant factor affecting cryptocurrencies is the monetary pumping of financial markets by the US Federal Reserve and other emission centers.
A lot of currency is printed, which constantly flows into the speculative market, and investors are investing these funds in crypto resources and cryptocurrencies, ”Romanyuk explained.
Reuters
© Chris Wattie / File
In addition, the actions of world central banks led to the acceleration of global inflation.
In these conditions, many investors are increasingly choosing to buy electronic coins to save money more reliably.
This point of view in an interview with RT was expressed by Vladislav Antonov, an analyst at the Alpari information and analytical center.
“At the beginning of the year, bitcoin has risen in price by about 134%, and ethereum - by 562%.
Due to such a high profitability, cryptocurrency has become a defensive tool against inflation, although previously gold was traditionally considered such an asset.
At the same time, the stock market now gives a low profitability, so investors are more actively investing money in digital coins, ”explained Antonov.
In addition, as the expert emphasized, large companies have recently begun to offer services for trading cryptocurrencies or storing electronic coins.
In these conditions, the global demand for digital assets will remain high in the foreseeable future, and the bitcoin rate will tend to $ 80 thousand, Vladislav Antonov believes.
Loss threat
At the same time, experts interviewed by RT warn about a number of existing risks when buying cryptocurrencies.
Thus, according to Hrayr Sargsyan, head of the department for the development of indices and quantitative research of Beta FT, even in the conditions of a prolonged increase in the rates of electronic coins, the threat of a sharp drop persists.
“The main risk is government regulation of digital assets.
Also, there are frequent cases of hacking of exchanges and theft of electronic coins.
Therefore, inexperienced investors should not invest in complex assets due to high volatility, ”Sargsyan explained.
Vladislav Antonov adheres to a similar assessment.
In his opinion, there are still not enough participants in the global cryptocurrency market today, so the likelihood of sharp fluctuations in rates remains high.
At the same time, the expert also noted that a change in legislation or a complete ban on the use of cryptocurrencies in different countries can completely bring down quotes.
Reuters
© Edgar Su / File
Note that a similar situation could already be observed in the first half of 2021.
For example, in May, the Chinese authorities banned financial institutions and companies from accepting cryptocurrencies as a means of payment and providing services related to digital assets.
Moreover, in June, the People's Bank of the People's Republic of China demanded that credit institutions and payment operators strengthen control over customer operations in order to suppress transactions and transactions with bitcoin and its analogues.
At the same time, the country's leadership began to fight against mining.
It is noteworthy that if back in April the cost of bitcoin reached $ 63 thousand, then after regulatory restrictions in China, the quotes fell by half and in July fell below $ 30 thousand. Although today the market has fully recovered from losses, experts do not exclude that the example of the Asian republic may other countries to follow.
“China is now actively promoting the digital yuan.
Accordingly, all other types of cryptocurrencies in the PRC are actually prohibited.
They cannot be used and applied, and all miners have been squeezed out of the country.
We understand that this process will spread throughout the world.
All other states are already moving along the path of creating their own digital currencies, but China's actions are forcing everyone to act even faster, ”concluded Valeriy Romanyuk.