Breaking Away: Bitcoin, Ether Run with the Bulls and altcoins follow

Is it inflation? Is it the new Bitcoin-related Exchange-Traded Funds? Is it the excitement surrounding the potential for the U.S. Securities and Exchange Commission to green light the first U.S. Bitcoin-only fund?

Whatever you think is driving the momentum in the digital currency market, well that’s your perspective. But one thing most everyone can agree on is that this run up for crypto has more legs in the mainstream than ever before.

Inflation’s up: so is Bitcoin

The rationale that Bitcoin is a hedge against inflation continues to be tested. And this week, the premise the investors are banking on BTC as a safe bet may be true.

The world’s first digital currency hit an all-time high (ATH) of $69,045 on November 10, which some link to the release of an abysmal U.S. report on the Consumer Price Index.

“Interestingly, the breakout was initiated right as a report from the United States Bureau of Labor Statistics (BLS) showed a sharp 6.2% annual rise in the Consumer Price Index (CPI), a figure that has hit its highest mark in 30 years,” Cointelegraph reports.

The U.S. is experiencing a raid rise in food, fuel and other goods and services, which the government is attributing to the Covid pandemic supply chain issues coupled with a labor shortage.

“The rise in the token can, at least partly, be explained through the fundamental argument — which has gained traction in recent months — that Bitcoin can act as an inflation hedge,” Bloomberg explains. “Crypto backers argue that, unlike dollars or any other traditional currency, the digital coin is designed to have a limited supply, so it can’t be devalued by a government or a central bank distributing too much of it.”

While BTC quickly settled back to the mid $60,000 range, traders are still encouraged about the strong response of the market.

“That was the first time ever $BTC traded as an inflation hedge,” tweeted economist Alex Kruger. “Crypto natives have big pockets now and thus the ability to change narratives. Perception => Reality.

Anticipation: Will the SEC greenlight a spot Bitcoin ETF?

Buzz abounds about whether or not the U.S. Securities Commission will finally give a green light to a Bitcoin ETF. The Commission has twice rejected the application of the Van Eck Bitcoin Trust, which would be based on the spot market. The regulatory body has until November 14 to make a decision to nix the fund or let it move forward.

“Now, Bitcoin and cryptocurrency traders are looking ahead to a looming regulator decision expected in the next few days over a fully-fledged Bitcoin ETF that would more closely track the cryptocurrency and could see ‘trillions of dollars’ flowing into Bitcoin,” Forbes reports.

In October, the first two Bitcoin futures ETFs began trading, as the SEC allowed the comment period for both funds to expire. The SEC has twice extended the ruling on the Van Eck Bitcoin Trust and can only allow for three extensions. Other Bitcoin funds are waiting in the wings as well.

Ether and Solana Lead Alt Coins to New Highs

Ether (ETH) also hit an ATH of $4,851 on Wednesday. The coin is up more than 35% so far this month and has seen record growth this quarter. Solana (SOL) also had a major breakthrough with a new ATH of more than $250 earlier in the week.

The continued growth of the Non-Fungible Token (NFTs) market may be fueling these two coins, as well as the blockchains’ ability to perform “smart contracts” which don’t require a person to execute.

“Experts predict that this wave of decentralized finance (DeFi) will become more prevalent in banking,” CNN reports. “That could be great news for Ether, as well as Solana, another crypto that has blockchain technology used in DeFi applications.”

While crypto followed the financial markets to a slight correction on Thursday, traders remain encouraged and engaged as crypto continues its climb to new heights in November.

Joyce Pavia Hanson




-- — crypto trading platform.

Love podcasts or audiobooks? Learn on the go with our new app.

Recommended from Medium

The 3 Types of Tokens and Why They’re Worth So Much

What is Libereum?

MDEX has WITCH listed.

What Early Investors Know About Palm Protocol

Dapper Labs raises $ 305 million with investors like Michael Jordan or Will Smith

We are pleased to announce that today, April 13, 2022, we released the utility-token ADVISORS.

Know the most effective method of buying and using Compound Decentralized Finance convention (COMP)

Mate Weekly #5

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store — crypto trading platform.

More from Medium

Avaxine the new community Token

Famous Swap Exchange Platforms

Full guide on how to buy FINT tokens, if you are new to crypto

How to Stake and Earn in Kaby