According to CoinGecko, the total value of the crypto market reached an all-time high of $3 trillion on November 8. Since the beginning of 2021, market capitalization has grown by over 280%. The Bitcoin to US dollar chart shows the high potential of cryptocurrencies for long-term investment.
The cryptocurrency market boost has been at least partly driven by the growth in Ethereum, which has hit a record high of nearly $4,800. The value of Bitcoin grew by approximately 5.9%, recently also peaking at an all-time high of $68,494.
“This milestone has been fuelled by global interest, institutional customers, and the outstanding evolutions in blockchain technology,” commented Bitfinex’s CTO Paolo Ardoino.
According to analysts at IntoTheBlock, over 860,000 ether has been withdrawn from centralized exchanges since October 1. The company also wrote in its Telegram channel that more than 8 million ether has been locked up in DeFi (decentralized finance).
“As Bitcoin exchange balance is at a 3 year low while long-term holder supply is at an all-time high, there are simply too few bitcoins available to keep up with the demand,” said Mikkel Morch, executive director at cryptocurrency hedge fund ARK36.
Experts anticipate inflation rate growth all around the world and believe that the financial bubble fueled by traders will soon burst. Because of that, more and more people have been investing in cryptocurrencies. Since June, both Ethereum and Bitcoin have grown nearly 70% against the US dollar.
Matthew Dibb, COO at Stack Funds, a Singapore-based digital asset manager, commented that “we’re getting the feeling that the market has shifted.” He also emphasized that large investors and pension funds are getting more and more interested in cryptocurrencies. Market momentum has been supported by the launch of the first U.S. Bitcoin futures-based ETF in October — the news that increased expectations of flow-driven gains.
According to analysts at a digital asset investment firm CoinShares, total inflows into BTC products and funds have already reached a record high of $6.4 billion in 2021, with $95 million last week alone.