Ethereum Rallies 10% to Hit $4,800 while Bitcoin Stabilizes
01 Dec 2021 · 3rd Party Analysis
- Ether rallies 10% to hit $4,800 per token early Wednesday while markets trade sideways
- Bitcoin price remains stable near $58,000 as Omicron concerns weigh over the orange coin
What’s Trading in the Markets?
Ether stole the spotlight Tuesday and early Wednesday as it outperformed bitcoin by a wide margin. In more detail, the Ethereum token gained 10% to hit $4,800 per coin while the broader crypto market maintained sideways trading. Bitcoin, for example, finished Tuesday lower by less than 1% near $57,500 per coin.
In practice, traders and investors showed increased appetite to hold ether rather than bitcoin. Since the weekend, the price of ether has skyrocketed more than 20%. In comparison, bitcoin is up about 8% for the same period.
Going further, since the start of the year, ether boasts a massive gain of 540% compared with bitcoin’s increase of roughly 100%. The token running on the Ethereum network is currently floating about 2% from its record high at $4,860. Bitcoin, on the other hand, is about 16% away from its all-time high of $69,000.
What’s the Latest News in Cryptocurrency?
Ether and bitcoin have been gaining in the context of improving sentiment in the cryptocurrency market. In other words, traders and investors in the fast-emerging crypto asset class are feeling more comfortable increasing their bets this week.
Early on Wednesday, most of the major digital assets float fairly in the green while the market climbed above a valuation of $2.6 trillion.
In contrast, fear and uncertainty was the prevalent theme over crypto on Friday. Not only that, but the threat of a rapidly spreading Omicron variant knocked the wider financial markets. To this end, some reports have revealed the virus threat might not be as scary as initially thought.
“Don’t freak out, the plan remains the same: Speed up the administration of a third booster shot,” said Ugur Sahin, co-founder of BioNTech. In addition, he also noted in an interview for the WSJ vaccinated people would most likely be protected from the Omicron strain.
Dive Deeper in the Financial World
Stocks and currency pairs, in the meantime, continue their coronavirus-fueled swings. Stocks on Wall Street, in particular, retreated on Tuesday as a selloff intensified a day after major indexes gained.
More specifically, the Dow Jones Industrial Average and the S&P500 declined 1.9% each. Additionally, the tech-heavy Nasdaq Composite tumbled 1.6%. In practice, stocks across the board entered into negative territory right after the opening bell.
What weighed on the stock market was an announcement from Federal Reserve Chair Jerome Powell before US lawmakers. In his hearing before Senate, Mr. Powell said it was finally time to retire the word “transitory” when speaking about inflation.
“We tend to use [transitory] to mean that it won’t leave a permanent mark in the form of higher inflation,” Mr. Powell said. “I think it’s probably a good time to retire that word.”
Further, the Fed chief commented the US central bank was prepared to speed up the pace of tapering, or reducing, the monetary stimulus. The step is intended to curb surging inflation.
What to Expect in the Markets?
On Wednesday, Fed Chairman Jerome Powell appears before US lawmakers for his second day of the hearing. He is expected to provide more detail into the Fed’s timeline of withdrawing asset purchases. His remarks are scheduled for 10:00 am EST. To this end, heightened volatility could be expected in financial markets.
Later, at 07:30 pm, Australia will reveal its retail sales report for November. Keeping this in mind, increased swings in the Australian dollar could be expected.