8th February 2021

North America

Ethereum rises to all-time high prior to launch on the stock market

Ethereum, the second most popular cryptocurrency, hit record highs at over $ 1,500. The trade seems to be partly fueled by speculation, a major factor driving demand is the Chicago Mercantile Exchange's launch of Ethereum futures this Monday.

Ethereum has seen year-to-date gains of around 120 percent, compared to bitcoin's 30 percent, and hit an all-time high of $ 1,576.7.

Ethereum's upward trajectory may be representative of the "fortunes of the entire cryptocurrency ecosystem," said Paolo Ardoino, CTO of Bitfinex. One macroeconomist expects the price to surge higher, to around $1,920, ahead of the CME launch.

"The listing of ethereum futures on a regulated exchange should serve to improve the structure of the cryptocurrency market by allowing investors to gain exposure to the second largest cryptocurrency as a Bitcoin diversifier, or simply to hedge existing ethereum exposures." JPMorgan strategists wrote.

Separately, bitcoin rose 3% last Thursday to $37,381.04, against the backdrop of continuing global macroeconomic uncertainty with the potential to devalue fiat currencies.

Crypto traders have a valuable lesson to learn from the hustle between Reddit traders and big Wall Street players last week.

Led by Bitcoin, cryptocurrencies are gaining ground among mainstream investors. The euphoria pushed the total market value of all cryptocurrencies above $ 1 trillion for the first time in early January.