Bitcoin hits all-time high, but momentum for more gains this year is intact

The representation of the Bitcoin cryptocurrency is placed on the PC motherboard in this illustration taken on June 29, 2021. REUTERS / Dado Ruvic / Illustration

HONG KONG, Oct.21 (Reuters) – Bitcoin edged down in Asian hours on Thursday, a day after marking a record optimism around the launch of the first U.S. bitcoin futures ETF.

The world’s largest cryptocurrency last fell 1.3% to $ 65,184 after hitting a record high of $ 67,016 on Wednesday, but still above the previous peak of $ 64,895 seen in April.

“We think it’s going to increase and we can easily reach 80,000 or 90,000 by the end of this year, but it won’t be without volatility,” said Matt Dibb, COO of Singapore-based Stack Funds.

Over the past few days, he said, traders have started paying high rates to borrow to buy bitcoin futures, “and that’s a sign that we might be a bit overwhelmed, and that ‘there could be a setback ahead.’

He added that he anticipates traders will exit bitcoin and turn to major “altcoins” – other cryptocurrencies.

Ether, the world’s second largest cryptocurrency, rose 1% to $ 4,203 and there were larger gains in smaller tokens as well.

Market participants say the latest wave of buying was supported by the launch of the first US bitcoin-based exchange-traded fund (ETF), with investors betting this will pave the way for more investment from the market. share of private and institutional investors.

Existing bitcoin exchange-traded funds and products have seen strong inflows since September.

Average weekly flows to bitcoin funds totaled $ 121.1 million in October, up from $ 31.2 million a month earlier, according to data from London-based CryptoCompare.

The three months leading up to September had seen cash outflows after significant losses for bitcoin in May and June.

Reporting by Alun John; Editing by Edwina Gibbs

Our Standards: Thomson Reuters Trust Principles.


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