..

'Speculative Excess': Ethereum Finds New Peak in Sizzling Crypto Market

Written by:
Reuters
Published on:
May/04/2021

(Reuters) - Cryptocurrency ether rose to a fresh record peak on Tuesday before dropping sharply as some investors pulled profits from a white-hot market bulging with questionable new entrants.

coinbase_0.gif

A day after blowing past $3,000 for the first time, ether, the token traded over the ethereum blockchain, hit $3,457.64 on the bitstamp exchange before dropping 6% to $3,244.

That still leaves it with a gain of some 340% this year. The rise is in part a spillover from flows into bitcoin, which has grown in stature as big-name investors from Elon Musk's carmaker Tesla to Wall Street investor Stanley Druckenmiller buy in.

It is also being driven by a speculative frenzy in the asset class. Joke cryptocurrency dogecoin is up by 9,000% this year to put the sum of its tokens on issue at over $54 billion. Other new tokens have proliferated, and buyers this week piled in to several tiny new coins promoted by porn stars.

"What we're seeing right now is the definition of speculative excess," said IG Markets analyst Kyle Rodda, who likened it to the tech-bubble mania of two decades ago.

"There's money being thrown at anything in the crypto space," he added.

With a market capitalisation of $376 billion, traders are taking the gains in ether much more seriously and say it is catching up to bitcoin's rise and that upgrades to the ethereum blockchain stand to make it more useful. read more

Against bitcoin the value of ether has more than doubled this year and it touched a more than two-and-a-half-year high early on Tuesday. Bitcoin , which is up 90% this year dipped to $55,625 while the U.S. dollar firmed slightly elsewhere.

Business/Financial News

CoinGeek NYC Live or Virtugal: One Week to Go

CoinGeek NYC Live or Virtual: One Week to Go

There’s only a week left until the CoinGeek Conference in New York City. And as a proud association partner, Bitcoin Association is inviting you to watch the final round of the 4th BSV Hackathon during the conference!

China's Top Regulators Ban Crypto Trading and Mining, Sending Bitcoin Tumbling

China's Top Regulators Ban Crypto Trading and Mining, Sending Bitcoin Tumbling

China's most powerful regulators on Friday intensified a crackdown on cryptocurrencies with a blanket ban on all crypto transactions and mining, hitting bitcoin and other major coins and pressuring crypto and blockchain-related stocks.

Oregon Ducks Star Kayvon Thibodeaux Launches Own Cryptocurrency

Oregon Ducks Star Kayvon Thibodeaux Launches Own Cryptocurrency

Oregon defensive end Kayvon Thibodeaux announced Thursday the launch of his own cryptocurrency.  The news comes following changes to the NCAA's name, image and likeness rules made in July.

Businesses That Have Survived Rough Times

Businesses That Have Survived Rough Times

If you have an online iGaming project and you also want to expand it with sports betting, then it’s important to have high-functioning sportsbook software. Well, the aim of any gambling or betting site is to attract as many players as possible by providing them the best experience possible.

Bitcoin Site Goes Dark After Apparent Hacking

Bitcoin Site Goes Dark After Apparent Hacking

Bitcoin.org, the website that was once the main landing portal for all things Bitcoin, today suffered an embarrassing hack that has already cost naive BTC users money.

Syndicate