Bitcoin and Ethereum Soar to Record Highs as Crypto Market Tops $3tn

09 Nov 2021 · 3rd Party Analysis

Bitcoin, Ether Soar to Record Highs as Crypto Market Tops $3tn

WRITTEN BY ThorFX

In Summary:

  • Bitcoin and Ether both soar to fresh record highs in overnight trading on Tuesday
  • The cryptocurrency market is now worth more than $3 trillion

Bitcoin, Ether Surge to Fresh All-Time Highs

Bitcoin and Ether both soared to new all-time highs earlier today. Bitcoin, on the one hand, gained about 4% early Tuesday and reached a fresh all-time record of $68,480 per coin. Ether, on the other hand, sprinted about 2% and set a fresh record high of $4,840 per token.

With this in mind, bitcoin surpassed its previous record of $67,000. The same applies to the Ethereum token, which eclipsed its previous all-time high of $4,665.

That said, the cryptocurrency markets, and the original cryptocurrency in particular, have been on a tear over the past few months. Several key developments underpinned the record-breaking moves across the major crypto tokens.

Growing Adoption Fuels the Upside Momentum

First, since the launch of the ProShares Bitcoin ETF on Wall Street, the investment climate in crypto has improved significantly. In other words, once crypto products landed on the stock market, the legitimacy of the crypto space was greatly bolstered.

Second, US regulations over the fast-emerging digital asset space look bright. In more detail, crypto backers expect rules and taxes which would allow the rally to continue as the market progresses.

And third, the cryptocurrency industry is enjoying a slew of events that highlight the quickly growing mainstream adoption. A recent example is the decision by the next New York mayor to accept bitcoin for his first three paychecks.

What You Should Know About Taproot?

Crypto traders and investors are already shifting their attention to next week when Bitcoin rolls out a major upgrade.

More precisely, a software upgrade called Taproot would introduce better speed and greater transaction privacy. Furthermore, the upgrade will aim to allow smart contracts, a key feature of blockchain technology.

The Taproot upgrade would be the first big change in the technological development of Bitcoin since April 2017. Expected to be released sometime next week, Taproot achieved a consensus of 90% among the Bitcoin miners.

Against this backdrop, the price of bitcoin could trade in an increasingly volatile environment as traders position for the upgrade.

It’s important to note that Taproot is considered a “soft fork”. This means the changes in the code will not lead to the creation of a separate blockchain. In the case of a “hard fork”, however, the new code results in a second blockchain.

Economic News Today (EST time)

On Tuesday, stocks and pairs follow a relatively calm trading session. While US futures float slightly lower, the US dollar has lost ground against a stronger Japanese yen. On this note, increased volatility in forex market could occur today.

Federal Reserve Chairman Jerome Powell will speak at an online event alongside other central bankers. In detail, the “Conference on Diversity and Inclusion in Economics, Finance, and Central Banking” unfolds later today.

The Fed Chair will join the heads of the Bank of Canada, the European Central Bank, and the Bank of England. They will be discussing the outlook for the global economy amid a receding pandemic. In addition, talks will also focus on finance and the role of central banks on the global scale.

The event starts at 09:00 am with opening remarks from Fed Chair Jerome Powell.

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