Ethereum Hits $4,100 Record As Momentum Continues
Ethereum has set yet another record this week after the price climbed to a new high of $4,105 overnight (ETH-X).
The second-largest cryptoasset by market capitalization has been moving in a sharp upwards trajectory since its latest hardfork as it continues to prove its use-case. The number of DApps (Decentralized Applications) continues to grow on the platform.
Demand from institutional investors is fueling this latest move higher as large-scale buyers diversify their exposure in this emerging asset class, with ethereum the natural next pick.
The coin also has a far lower dollar value than bitcoin (BITCOMP), which is currently trading just below $59,000 after a move up itself over the weekend.
This lower dollar value makes ethereum attractive to investors who want to own whole coins, with the pool of potential investors who could invest $4,000 to buy one ethereum clearly larger than the number of investors who are willing to spend $59,000 to own one bitcoin.
Ethereum Classic soars by more than 300%
Ethereum Classic (ETC) has surged in value by more than 300% in the last week as investors snap up the cryptoasset.
The original ethereum, which has since been superseded by ethereum, has rocketed from $34 to $127 in the last seven days, having peaked above $150.
The surge means ETC is now the 13th largest cryptocurrency by market capitalization, having started the year in 38th place. Nonetheless, it is well behind its namesake ETH which is the second largest cryptoasset.
Dogecoin rebounds after Musk leaves investors hanging
The price of Dogecoin (DOGE-X) was climbing Monday after a volatile weekend which first saw it plunge in value after Tesla CEO - and Doge fan - Elon Musk’s long-awaited appearance on Saturday Night Live (TSLA).
The appearance over the weekend had been expected to mark a watershed moment for Doge, and comments from Musk during one sketch saw him remark that it was “a hustle”.
The comments sparked a sell-off in Doge which fell as low as $0.42 at one stage, before rallying some 25% off lows to trade at $0.53 this morning.
Citi weighs launching crypto services
Citigroup (C), one of the world’s largest currency trading banks, is considering entering the cryptoasset market.
According to reports, Itay Tuchman, its global head of foreign exchange, has said it is “considering its options” amid surging interest in bitcoin from asset managers, hedge funds and corporates.
Tuchman said the bank had not yet decided whether it would offer its clients cryptocurrency-related services, but he said that trading, custody and financing were all under consideration.
“There are different options from our perspective and we are considering where we can best service clients. This is not going to be a prop-trading effort,” Tuchman told the Financial Times.
Microstrategy announces strong earnings
MicroStrategy (MSTR), the business intelligence and cloud software company known for its exposure to bitcoin, has revealed a surge in revenues in its much-anticipated financial results for the first quarter of 2021.
Having made a number of bitcoin investments in the last year, the company said in its update that total revenues for the first quarter of 2021 were $122.9 million, up 10.3%.
It added that its gross margin had risen to 81.7%, up from 78% in Q1 2020. As part of MicroStrategy’s well-publicized bitcoin acquisition strategy, the company acquired 20,857 bitcoins during the first quarter of 2021. The company purchased them for a total of $1.086 billion, at an average purchase price of $52,087 per BTC.
“MicroStrategy’s first-quarter results were a clear example [of] our two-pronged corporate strategy,” the release said. “To grow our enterprise analytics software business and acquire and hold bitcoin [which] is generating substantial shareholder value.”
Miami-Dade County creating cryptocurrency task force
The Miami-Dade County Commission last week passed a resolution to create a cryptocurrency task force.
The 13-member task force has been created to look at the feasibility of allowing the county to accept cryptocurrencies as a form of payment for taxes, fees and services.
Commissioner Danielle Cohen Higgins, who sponsored the resolution to create the task force, said the acceptance of cryptocurrency by Miami-Dade has the potential to attract highly skilled talent and high-paying jobs to the county.
"We have a chance to lead as the crypto county and explore policy in this emerging industry," Higgins said in a statement. "By revolutionizing how we do trade, cryptocurrency and blockchain technologies have the potential to attract and retain highly skilled talent, create jobs, and grow our local economy."
The board will provide a report on feasibility, potential costs, and recommendations within 180 days.
Disclaimer: This article should not be taken as investment advice, personal recommendation, or an offer of, or solicitation to buy or sell, any financial instruments. This material has been ...
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