Bitcoin and Ether are close to record prices, with investors massively investing in the second largest cryptocurrency. Ether is showing an incredible surge in demand, raising the total market capitalization to a record $4.2 trillion.
This is reported by Bloomberg, writes UNN.
Details
As of Wednesday morning in New York, Bitcoin was trading at over $120,600 — just 2% below its July peak. Ether, on the other hand, has overcome a long period of stagnation and is only 3% away from its 2021 record value. The second largest token stimulated the growth of the total cryptocurrency market capitalization to a historical $4.2 trillion, according to CoinGecko.
The record demand for Ether is supported by significant investments in funds working with the token and an increase in the number of "treasury" companies that accumulate Ethereum following Michael Saylor's strategy for Bitcoin.
The total amount of Ether in such organizations exceeded $17 billion, according to StrategicEthReserve.xyz.
Shares of ETHZilla, a biotechnology treasury company controlled by billionaire Peter Thiel, rose by more than 50% in pre-market trading, and Tuesday brought a rise of more than 200% after the announcement of owning 82,186 Ethereum tokens.
According to Bloomberg, US spot Ether ETFs attracted over $1.7 billion in net inflows in August, while Bitcoin funds experienced outflows of $436 million.
For the first time, nine Ether ETFs surpassed twelve Bitcoin counterparts in trading activity. Open interest in Ether futures also reached a record $66 billion (Coinglass).
According to Geoff Kendrick of Standard Chartered, the adoption of the GENIUS Act in the US in July, which promotes the mass adoption of stablecoins, will indirectly increase Ethereum activity, as more than half of stablecoins are based on this token. This opens the way for more active work of decentralized finance (DeFi), where ETH holds a dominant position.
Standard Chartered predicts that Ether could reach $7,500 by the end of 2025, compared to the previous target of $4,000, highlighting the incredible growth potential of the second largest cryptocurrency.
Addition
Global financial markets, including the cryptocurrency market, immediately reacted to US President Donald Trump's statement about progress in relations with China. The price of Bitcoin rose to almost $105,000 per coin.
Fintech expert and co-founder of the Ukrainian fintech ecosystem Concord Fintech Solutions Olena Sosedka commented for UNN that this confirms: cryptocurrency has long ceased to be a purely speculative asset and has become part of the global macro-financial system. According to her, digital assets sensitively react to positive expectations, especially when it comes to a possible easing of regulatory pressure or strengthening of trust from institutions.
Sosedka emphasized that the growth affected not only Bitcoin — the prices of other cryptocurrencies, including Ethereum, also rose and are approaching $3,000 per coin.
Bitcoin is an indicator not only of financial but also of political conjuncture. Since digital assets are not controlled by governments, they are especially sensitive to signals from major players
Recall
The Bitcoin exchange rate rose to $122,000, approaching its historical high of $123,205. The growth is driven by the interest of large investors and corporate treasuries.