The bull market continues its frenzy. Today Bitcoin reached a two-year high ($685 in Bitfinex), and the rally rippled waves across the Cryptocurrency market. Ethereum reached a new all-time high (in the ETHUSD FIAT pair).
The market experienced a great deal of volatility, traders on the bull side found bids and pushed the price high enough to create a $87 daily green candle, approximately 114,100 Bitcoins were traded yesterday on Bitfinex.
The market capitalization of Bitcoin has reached $10 billion and a 24-hour volume of $245 million (Data via CoinMarketCap). Reasons for this spike in valuation responds to a tremendous buy pressure from Chinese markets, seeking for a more strong currency, as Yuan keeps devaluating.
The Block Halving Event is another decisive factor. There has been extensive debate about this topic, with many raising the concern that a failure to drive the price higher could cause a ‘death spiral‘, Venezuelan-Panamanian trader Gerardo Mogollón told The Merkle:
Every asset traded in the world is affected by the law of supply and demand , if you effectively halve the amount of Bitcoins produced every 10 minutes the price will go up, there is just so much at stake in the game.
Another impending event that may push prices higher is the possibility of a Brexit -Withdrawal of the United Kingdom from the European Union-, this event will meet a resolution on June the 23 when voters will decide the country’s future.
Ethereum also found bids today, when the price spiked from $14.24 to $16.08 making a new all-time high (Data via Bitfinex). Also, Bitfinex’s Ethereum market saw more volume on the Fiat pair (ETHUSD) than the ETHBTC one -163.790 ETH vs 162.514 ETH respectively.
It is possible that traders exiting their BTCUSD positions decided to hedge their profits using another strong cryptocurrency -FIAT is not as attractive in these circumstances. All in all, this is good news for those speculating on both (Ethereum and Bitcoin) markets.
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