“The cryptocurrency market is growing with astonishing speed,” Ipek Ozkardeskaya, market analyst for SwissQuote, told AFP. For her, there is “a part of speculation and a part of reality.”
Since the end of October, the US markets have access to an index fund (ETF) to the evolution of Bitcoin, which allows investors to bet on the rise of the first cryptocurrency without leaving Wall Street. Contrary to the euro or the dollar, the number of Bitcoins was set at 21 million, which are issued little by little, a rule impossible to change without controlling the integrity of the decentralized network.
Some investors therefore believe that cryptocurrencies are a way to hedge against inflation, which is increasing in both Europe and North America.
“It is a very risky strategy given how volatile the cryptocurrency is and seeing how its value can suffer pressure from regulators, or even comments on social networks”Susannah Streeter, market analyst for Hargreaves Lansdown, alerts in a note.
Bitcoin (+ 5% to $ 66,035) was approaching its all-time high, while Ethereum, the second-largest cryptocurrency in terms of market size, was up 2% to $ 4,727, after previously skyrocketing to $ 4,727. new maximum of $ 4,768.
Both Bitcoin and Ethereum represent over 40% and just under 20% of the market, respectively. The volatility of small cryptocurrencies is higher. Shiba Inu, a crypto asset created to rival Dogecoin, reached a theoretical size of $ 40 billion at the end of October, becoming the 10th largest cryptocurrency. But a few days later, he lost $ 10 billion.
“Today’s champions are unlikely to be tomorrow’s survivors,” stresses Ozkardeskaya, who fears “a bubble of the same type as the Internet” in the 2000s.
Source From: Ambito
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