Bitcoin has crossed the $100,000 threshold, closing at approximately $103,249.99 on Friday, reflecting over a 6% increase for the week. Ether also made waves, gaining 25% this week — its highest since May 2021. Meanwhile, major altcoins remain deep in the red compared to Bitcoin’s strong growth, prompting analysts to advise investors to stick with Bitcoin for now.
Cryptocurrency markets are buzzing this week as Bitcoin clings tightly to the $100,000 mark, a notable achievement in recent times. On Friday, Bitcoin’s value floated at around $103,249.99, reflecting a 2% increase for the day. Earlier in the day, it even soared to $104,324.65, its highest since late January. This upward trend marks more than a 6% gain this week, setting Bitcoin up for its fourth consecutive winning week, the first such streak since last year’s November.
Gadi Chait, head of investment at Xapo Bank, offered some insight into this surge. He mentioned, “This move above $100,000 should be viewed as more than mere euphoria, but rather as evidence of a flows-driven shift.” He pointed out that big investors, often referred to as whales, have been purchasing more Bitcoin, alongside record demand for Bitcoin ETFs. Meanwhile, developments in tariffs involving the U.S. and U.K. have eased some risk concerns, benefiting Bitcoin along with other investments like stocks and oil.
Shifting gears to Ether, this week has been a rainbow of growth for the cryptocurrency. The popular altcoin saw a hefty 10% jump recently, bringing its two-day total to a skyrocketing 29%. Further bolstering its rise, Solana’s token also hiked by 6%, now resting at a 16% increase over two days. To add to the excitement, the Ethereum network rolled out a crucial upgrade, Pectra, which promises lower transaction fees and revamped staking processes.
Overall, Ether has rallied by 25% during the week, marking its best performance since May 2021. Similarly, the Solana token, with its 14.3% increase this week, is poised for its strongest week since January. However, don’t let these numbers fool you. Year-to-date performance paints a less rosy picture for Ether and other altcoins, which remain significantly down compared to Bitcoin — a grim 31% for Ether and a 12% dip for Solana this year.
The landscape has shifted dramatically with the introduction of spot Bitcoin ETFs in 2024, attracting investors from retirement accounts to corporate funds, says Eric Chen, co-founder of Injective. Meanwhile, altcoins are still hanging on to the risk-on capital typical of the crypto world, which is yet to blossom alongside broader tech developments. This disparity could keep Bitcoin ahead for the foreseeable future.
Read Harvey from Wolfe Research stressed the importance of a strategic approach: “For us, there remains one singular strategy for crypto investors: stick to BTC until risk on headwinds dissipate.” He noted that Bitcoin is one of just two cryptocurrencies in their portfolio that are faring well this year, raising the stakes on whether it can uphold its recent lead over equities.
In summary, Bitcoin’s steadfast performance above $100,000 showcases resilience in the cryptocurrency arena, with growing interest from large investors and improved market conditions contributing to its rise. Meanwhile, Ether is experiencing a significant surge, thanks to successful upgrades and sentiment improvements—though it still lags behind Bitcoin for the year. The future for altcoins looks uncertain while Bitcoin gains traction from broader investment pools. Investors are advised to maintain a focus on Bitcoin until market dynamics change.
Original Source: www.cnbc.com
