Bitcoin Flat at $ 52K as Ether Gains Momentum
Bitcoin hovers around $52,000 as markets wait and see whether the current price level will be held in the next few weeks. Bitcoin (BTC) trading around $52,124.59 as of 11.00 p.m. Slipping 0.32% over the previous 24 hours. Bitcoin’s 24-hour range: $50,941.99-$52,621.84
The price of bitcoin hit a record high above $52,000 on Wednesday, with a market capitalization nearing $1 trillion causing alarm on the high volatility of the cryptocurrency.
Analyst at JP Morgan said the high volatility remained a problem for the digital asset as it is far more volatile than gold, which many crypto investors are hoping the digital asset can replace as a store of value in investors’ portfolios.
However, Elon Musk, CEO of Tesla defended the cryptocurrency after the company took the cryptocurrency space by storm when it announced this month it had put $1.5 billion of cash into Bitcoin. In a reply to Bloomberg TV interview on Twitter Elon Musk said, “Having some Bitcoin, which is simply a less dumb form of liquidity than cash, is adventurous enough for an S&P500 company.
Robinhood, an American financial services company brokerage app said it plans to enable withdrawals and deposits of cryptocurrencies including dogecoin (DOGE).
In a tweet Wednesday, the app provider said it “fully intends” to provide the extra functionality, without giving a date. Currently, traders can only buy and sell crypto assets within the app, according to its support page. The news came shortly after the app provider was named as the owner of the world’s largest dogecoin wallet.
Ether Follows Bitcoin
Ether (ETH), the second-largest cryptocurrency by market capitalization, was up Thursday, trading around $1,941.71 and climbing 5.77% in 24 hours as of 21:00 UTC (4:00 p.m. ET).
Some said ether’s latest rally was triggered by increased institutional interest. Since Grayscale Ethereum Trust (ETHE) just bought over 197,890 ETH worth $344 million on behalf of its investors in a span of two weeks, Ether is also witnessing an influx of investments.
Analysts have also warned the market on the high volatility of ether.