Bitcoin, the world’s biggest cryptocurrency, jumped to a two-and-a-half-week peak while Ether, the second-largest crypto climbed to a fresh record.
Bitcoin was last up nearly 3 percent at $65,121, underpinning the Ethereum network which hit a new high of $4,711 as cryptocurrencies mounted higher on a wave of momentum, favorable news, and inflation fears.
Ether is up 57 percent since the beginning of October, while bitcoin is up about 50 percent. Investors have hailed the introduction of a U.S. futures-based bitcoin exchange-traded fund last month and sought exposure to an asset class that is sometimes considered as an inflation hedge.
Falling real values, as traders prepare for inflation, increase the appeal of assets such as gold and cryptocurrencies, which do not pay a coupon, according to Mr. Kyle Rodda, market analyst at IG Markets, a world-leading online trading provider, who also noted that the climate in the sector has been positive.
“Financial institutions want to be a part of it, regulators don’t want to clamp down on it too much. We’re almost past the inflection point, where it’s part of the system and it’s going to be very, very hard to extricate it,” said Mr. Rodda.
In recent weeks Australia’s biggest bank has said it will offer crypto trading to retail customers, Singaporean authorities have sounded positive on the asset class and spillover from a positive mood in stocks has also lent support. Major players in UAE are also seeking to increase investments in cryptocurrencies, a survey reported in July.
In September, the Dubai World Trade Centre Authority (DWTCA) entered into a deal with UAE’s SCA, focused on growing its services as a chosen free zone for international investors and entrepreneurs. DWTCA is aiming to help firms based on blockchain and cryptocurrency as Dubai continues its drive towards innovation and a digital-led economy.
