Top cryptocurrencies scale to life-high levels in November. Bitcoin and Ethereum pulled back after hitting record highs on Wednesday, November 10, 2021.
Bitcoin and Ethereum Move to New Highs in November
Bitcoin, the world’s largest crypto in terms of market cap, climbed to an all-time high at $68,990 on Wednesday, November 10, 2021, and later pulled back to $64,930 on Thursday, November 11.
Similarly, Ethereum (ETH) surged to $4,861. The world’s second highest crypto in market cap surges higher with the market momentum, rising to life-high levels on November 10. It saw a slight pullback to $4,712 on November 11.
According to CoinGecko, the total cryptocurrency market cap crossed the $3 trillion mark. With cryptocurrencies in a bull run, the market saw a huge surge in October and November, reaching new heights. The crypto market cap on November 8 was at $2.87 trillion, and by November 10, it saw a surge to more than $3 trillion.
On October 1, Ethereum prices were at $2970, and it has risen more than 60% within a few weeks. Bitcoin surged 43% during the same period.
In January 2021, Bitcoin prices were at $30,500, and prices have more than doubled in November. The year 2021 has been good for the crypto market. Except for May and June, Bitcoin prices have been moving higher in 2021. Ethereum prices were at $1,010 on January 1, 2021. It has quadrupled within 11 months.
Popular altcoins like Ripple XRP, Litecoin, and Cardano are moving ahead with the positive flow in the crypto market. Meme-based coins, Shiba Inu and Dogecoin, saw a rise in prices.
However, Polygon, Tether, and USD Coin saw a reversal in value.
After the two leaders, Bitcoin and Ethereum, Binance Coin is trading higher. Solana is surging higher than Tether and Cardano to become the fourth largest crypto.
The Sudden Surge in Digital Assets
Since the start of October, both cryptocurrencies have surged with a positive trajectory. The rising value brought delight to investors for the high returns on investments in a short duration.
Bitcoin Exchange Trade Fund (ETF) crossed the $67,000 per token in early October when it got listed on the New York Stock Exchange. The world’s oldest crypto is highly bullish at the moment. The ETF attracts investors with its surging prices. It involves less risk than the other exchanges, say analysts.
Investor savings during the pandemic saw a significant rise. The covid lockdown restricted outside travel, and consumer spending has come down during this period of lockdown. Digital assets lure investors who are on the lookout for investments with good returns.
Inflation worries hit several countries like China, the US, and the UK. High inflation and high prices are a worry to the ordinary man. Investors from the forex and share market show more interest in the crypto markets, as they are more profitable. Rising inflation is the cause of the weakness in safe-haven assets like the US dollar. Crypto tokens play an important role as an inflation hedge, which attracts investors into digital assets.
Since the listing of the Bitcoin ETF on the stock exchange, crypto prices are moving higher. The crypto market is volatile, and a sudden reversal may happen anytime, say experts. Experts advise investors to expose only 5% of their portfolio to the crypto market. Every time the crypto market moves up, traders can expect higher volatility in the market.
More companies show interest in adopting crypto payments. Apple CEO Tim Cook said that he added cryptocurrencies to diversify his portfolio. However, he said that Apple will not join the crypto circle. Tesla CEO Elon Musk says that the company will resume Bitcoin as payment for its vehicles once the conflict on renewable energy is over. Square Inc and Visa are a few large companies that disclosed their crypto holdings in their portfolio.
Digital Currency is an Unregulated Market
The inflow of investments into the top cryptocurrencies, Bitcoin and Ethereum, is a good sign of growth in the crypto sector. It is a strong bull-run, say experts. While critics observe that the new bull run may be a bubble about to burst, investors are confident in the bull run to continue for a longer duration.
Digital currency is an unregulated market that does not have a central governing authority. Investors holding crypto tokens are well aware of the risks involved in the unregulated market. Experts advise traders to have just 5% of their total portfolio with crypto assets. Investors should not get motivated to invest hard-earned money into the crypto sector when prices are at life-highs.
Crypto adoption is higher among the millennials and high net-worth individuals who prefer the digital asset class. Countries like El Salvador adopted crypto as legal tender in 2021. El Salvador President Nayub Bukele promoted the usage of Bitcoin for payment in the country. The president states that profits gained from the Bitcoin Trust will help fund new schools in the country. More countries are opening up to the usage of crypto in their transactions. However, scams and illegal activities corrupt the crypto market, tarnishing the good features of cryptocurrencies.