The values of bitcoin and ether are skyrocketing. How come?
Crypto Pirates
English - September 06, 2021 23:27 - 3 minutes - 6.65 MBTechnology Homepage Download Apple Podcasts Google Podcasts Overcast Castro Pocket Casts RSS feed
Bitcoin and Ethereum, two of the world's major cryptocurrencies, have surpassed their May 2021 highs. What does this mean for investors, given the cryptocurrency's history of volatility?
What has happened to the price of Bitcoin and Ethereum?
Bitcoin's price exceeded $50,000 on 4th September, according to CoinDesk data, a 20% rise over a month ago. Ethereum, on the other hand, has increased by 40% over the same time period, trading at more over $3,900.
These recent price highs indicate that the two cryptocurrencies may be on the verge of a bull run. Bitcoin's last all-time high, at $63,000, occurred in April. By July, the price had plummeted to less than $30,000.
Ethereum's price fluctuation has been comparable. The last time Ether traded above $4,000 was in mid-May, shortly followed by a price meltdown that saw the cryptocurrency's value plummet by more than half.
As has been the case in recent months, these prices may continue to rise or fall. However, why are they at such a high level currently? Let us conduct an investigation to ascertain this.
The reasons for the meteoric rise of Bitcoin and Ethereum
Numerous technologies have aided these digital tokens in their growth.
El Salvador's Legalisation of Bitcoin
El Salvador is on track to become the world's first country to include Bitcoin alongside the US dollar as a national currency. The government announced that effective 7th September 2021, cryptocurrency would become legal tender. This announcement may result in more Bitcoin use and speculation in other nations, which could affect the price.
Facebook Page Added for NFTs
Facebook just announced the debut of Diem, a new digital payment service. Additionally, firm leaders revealed in late August that they would be able to include NFT capabilities into its digital wallet, Novi.
Due to the fact that NFTs are based on the Ethereum blockchain, they have the potential to grow in popularity and hence raise demand for Ether due to Facebook's clout.
Regulations promulgated by the United States Securities and Exchange Commission
The SEC has been adamant about enforcing crypto laws on all participants. The commission has even filed charges against cryptocurrency CEOs who violate existing regulations.