Cryptocurrency has been in the news many times over the last few years. Each time, there seems to be an incredible rally which takes the price of Bitcoin to new heights, only to then crash just as spectacularly. After the crash, financial journalists and other pundits all generally insist that the crypto mania is over and that such highs will never be seen again.
And then, the next rally happens and the old highs are all shattered.
Recently, not only has this pattern repeated itself yet again, but it seems to now be spreading beyond just Bitcoin. It’s moving into other cryptocurrencies, which indicates a growing general strength and financial soundness in the crypto market as a whole.
Ether to the Moon?
Ether, the world’s second-largest cryptocurrency behind Bitcoin, has been experiencing quite the extraordinary rally of late.
As of April 5, the price sits at just over $2,100, which is right about at the all-time high for this cryptoasset. This year alone, the coin has surged an incredible 170% in price. Before this recent rally, Ether had peaked in price at about $1,400. This new rally smashes through that old high.
Bitcoin itself has also more than doubled this year and continues to sit comfortably at its new high.
There are many reasons for why we may be seeing this price increase in cryptocurrencies. One has to do with the many stimulus bills that have been passed of late in the wake of COVID-19 and the lockdowns that have been enacted in its wake.
Stimulus money has flooded into people’s hands in multiple installments, and many financial analysts believe that enormous numbers of people are using their stimulus money to buy crypto.
Another reason might be that Tesla recently decided to invest a whopping $1.5 billion in Bitcoin. When the company owned and run by the world’s richest man invest so much money into crypto, people are bound to take notice.
As of right now, according to CounMarketCap.com, Ether has a market cap of just under $244 billion. This compares to a figure of just under $1.1 trillion for Bitcoin.