Bitcoin rose to its all-time high, and Ethereum set a new record high on Monday; all this happened as cryptocurrency sailed on a wave of inflation fears, momentum, positive news, and flows. Bitcoin was up by about 4%, at $66 170, almost reaching the $67,016.50 high reached on 20th October 2021. On the other hand, Ethereum, the solid foundation of the Ethereum network, climbed to a new record of $4,768.07.
Following a U.S. futures-based bitcoin exchange-traded fund launch at the start of October, more people have been investing in Bitcoin. As a result, Bitcoin has risen by about 51% and Ether by around 59%.
As a result of falling yields, investors are getting attracted to cryptocurrencies. Investors prefer lower risks and low return investments, which explains the rise of Ether and BTC as traders prepare for inflation. According to an analyst at broker IG Markets, Kyle Rodda, the mood in the cryptocurrencies sector has been good.
For a while now, the government and financial institutions have been working towards the regulation of Bitcoin. Kyle Rodda reports that financial institutions are still working towards being part of the crypto while the regulators are careful not to act forcefully. He continued to explain that they are almost past the bend point, after which it will be part of the system, and it is going to be difficult to detach it.
In the last weeks, the largest bank in Australia announced its motive to offer crypto trading to retail customers. At the same time, Singapore authorities have supported the asset class, and positive comments from the stocks have also provided support.
Last week, Eric Adams, New York Mayor-elect, announced that he would get the first three months’ salary in Bitcoin. Also, his remarks signaled the intention to make his city center of the cryptocurrency industry. This was in response to a similar pledge from the Mayor of Miami.
Francis Suarez, the Mayor of Miami, said that he would take his first paycheck in Bitcoin. Suarez has been a supporter of the biggest cryptocurrency globally, and he is planning to make Miami a hub for cryptocurrency innovation.
Following the announcement from Adams, a senior market analyst at FX broker Oandam commented that Bitcoin is growing by the day and continues to attract interest from different people. He also welcomed the New York mayor-elect into the movement.
Crypto Competition Between the Two Cities
This is not the first time Adams is raising a cryptocurrency competition between his city and Miami. After winning the Mayor’s nomination in June, he promised to make New York the center of Bitcoins and technology. In this speech, he added that Miami had their run, and it was time for New York to shine.
In August, the Florida city, together with the CityCoins, launched a cryptocurrency called MiamiCoin. 30% of the MiamiCoin generated or mined are sent to the town. Following a report from the Washington Post, the program had generated $7.1 million as of September 2021.
The efforts and plans to transform New York into a Bitcoin hub might attract scrutiny from Letitia James, the New York Attorney General who recently launched severe measures on unregistered cryptocurrency companies.