Bitcoin, the most widely used cryptocurrency, has exploded in recent weeks. Especially so far in November, and it has approached $ 16,000, the highest level since the beginning of 2018. In this sense, experts insist that Bitcoin could have an upward cycle as in 2017. For its part, Ethereum also has seen gains in recent days.
The cryptocurrency, which was around $ 10,500 at the beginning of October, has risen 50% in just over a month, driven by the entry of institutional investors, and on Friday it reached $ 15,900. In just one week, since November 2, bitcoin has appreciated 18%.
Besides Bitcoin, Ethereum has also risen
For its part, Ethereum has also increased in value, although to a lesser extent. Currently, there are two key reasons why analysts expect Ether to perform strongly in the short term.
First, the market capital of Bitcoin could move towards ETH after the announcement of Ethereum 2.0. Second, ETH has recently tested a critical resistance level, increasing the chances of a broader rally. Given that the altcoin market has historically rebounded after an initial Bitcoin rally, the timing of an ETH uptrend is ideal.
In addition to this, today it was known that Buterin has been one of the most important contributors, until now. The inventor of Ethereum has shown his confidence in the project by making a deposit of 3,200 ETH for more than $ 1.4 million divided into 100 transactions of 32 ETH each.
Buterin still has about $ 2.5 million in the address he sent the funds from and $ 1 million in other Ethereum-based assets.
Now, according to experts, these movements are due to the strong entry of institutional investors in Bitcoin after the news that PayPal will allow the incorporation of cryptocurrencies to its payment platform.
BTC as digital gold
Recall that Bitcoin fell below $ 5,000 in March, with the first wave of the coronavirus pandemic, but reached $ 11,000, more than double, at the end of July. At the end of 2017, this cryptocurrency even approached $ 20,000.
Recently, billionaire investor Mike Novogratz expressed before the rise of Bitcoin that the cryptocurrency will be like “digital gold” and will not be used in the same way as the traditional currency for at least the next five years.
Also, he was more positive than ever about Bitcoin in an interview with Squawk Box. Novogratz explained that Bitcoin has officially entered a bull market. He also said that central banks, which will continue to print money without limits, will give Bitcoin a new boost. According to Novogratz, Bitcoin is increasingly seen as a hedge against tax irresponsibility:
“The Federal Reserve is going to keep printing. The world of cryptocurrency has an expression, you know the Federal Reserve is going brrrrrrrr, that press goes on and on. And so less fiscal, more Fed, good for cryptocurrency. I think there is a bigger story with cryptocurrency. We have crossed the Rubicon in its adoption. You will see all the banks, all the tech companies involved, so I think we are in the beginning of a big bull market ”, express.