Bitcoin was up nearly 16% for the last time the day it briefly traded at a daily high of $ 40,539.
The rally coincided with the abandonment of positions by short sellers and renewed interest in bitcoin following reports that Amazon could get involved in crypto.
“Bitcoin grabbed the headlines with an astonishing rally to $ 40,000. Attributed both to short coverage but also because of ongoing speculation about Amazon’s potential involvement in the crypto industry. The correlation with risk and / or gold is completely gone, so long since it’s a range of $ 30,000 to $ 40,000, ”said Nicky Shiels, Head of Metals Strategy at MKS PAMP GROUP.
And we’re back above 40k #Bitcoin
– Cameron Winklevoss (@cameron) July 26, 2021
Amazon’s speculation began after reports cited a job posting from the retail giant, which said it was looking for a “digital currency and blockchain product manager.”
“We are inspired by the innovation that is happening in the cryptocurrency space and explore what that might look like on Amazon,” a company spokesperson told CoinDesk last week. “We believe the future will be built on new technologies that enable modern, fast and inexpensive payments, and hope to bring that future to Amazon customers as soon as possible. “
This created a lot of excitement in the crypto space about Amazon potentially starting to accept bitcoin as a form of payment.
On top of that, data from Bybt.com revealed that more than 950 million crypto shorts were liquidated on Monday.
A slightly risky tone for the United States # markets to start the week with lower stock futures, yields and oil – although nothing dramatic
More dramatic is the rise in #Bitcoin, currently trading above $ 38,000 as private sector adoption continues as government pullback eases somewhat. pic.twitter.com/Nt5KGBHpzb
– Mohamed A. El-Erian (@elerianm) July 26, 2021
Ethereum also made impressive gains in this crypto rally, last trading at $ 2,319, up nearly 8% on the same day after hitting a high of $ 2,431.
And while most of the attention is still being devoted to bitcoin, Bloomberg Intelligence points out that Ethereum cannot be overlooked, predicting prices to resume their rally to $ 4,000 – an increase of over 70% from levels. current prices.
“Ethereum has been outperforming Bitcoin for about two years, and as a result of the B-Word conference, we expect the same. Our main takeaway from the July 21 event with a panel featuring Elon Musk, Cathie Wood, and Jack Dorsey was Musk’s acknowledgment that # 2 crypto is part of his holdings. It is nothing new that the global adoption of Bitcoin is in its early stages, with an upward trajectory gathering momentum. Less well known, Ethereum beats its competition and its growing status as a platform benchmark for the digitalization of financial and monetary infrastructure, ”said Mike McGlone, senior commodities strategist at Bloomberg Intelligence. “Crypto n ° 2 [is] building a base around $ 2,000 and Bitcoin doing the same at just over $ 30,000. We see the odds tilting towards a greater recovery in price appreciation and that Ethereum is gravitating towards $ 4,000. “
What makes Ethereum so attractive are its use cases in the crypto space, with cryptocurrency establishing itself as the ‘go-to crypto platform’ for disruptive innovation in the financial space.
“The most traded crypto asset – Tether – is a top use case for Ethereum and supports the rise in the price of # 2 crypto. Diving to the lower end of the range at around $ 50 billion , the 30-day average volume for the benchmark digital dollar around the world is more than twice that of Bitcoin and is on an upward trajectory, ”said McGlone. “Unless innovation and related digitization trends are reversed, the demand and price of Ethereum may continue to rise. Uniswap is the world’s largest decentralized exchange and operates on the Ethereum blockchain. Uniswap’s volume is about half that of Coinbase.
However, one thing to watch out for as the Ethereum universe grows is new regulations and probes that could impact further expansion.
For example, the US Department of Justice is now investigating whether Tether executives committed bank fraud during the creation of the digital token in 2014, Bloomberg News reported on Monday.
“Tether regularly maintains an open dialogue with law enforcement, including the Department of Justice, as part of our commitment to cooperation and transparency,” the company said in a statement. “It’s business as usual at Tether, and we remain focused on how best to meet the needs of our customers. “
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