Talking about 2020, the COVID-19 year as we infamously address it, we cannot restrain ourselves from cursing it for all the hardships it bestowed upon us. Staring from the crippling state of finance and industry to the rise in unemployment, the pandemic has affected every domain. However, amid this downfall, cryptocurrencies have outshined as a high-potential finance cluster. The surge in the top crypto tokens’ price value during the lockdown period has turned out to be a surprise for many investors who have grown trust in virtual currencies. Investors have started seeing crypto as a profitable substitute and a hedge asset against the traditional payment channels. This drive for crypto can be attributed to the rise in the interest rates of cryptocurrencies, which eventually triggered participation from both millennials and institutional traders.
The Recent BTC, ETH & Dogecoin Price Trends
In 2008 when Satoshi Nakamoto introduced the world with its first cryptocurrency, Bitcoin, and the experts were confused. There remained an ambiguity on the success and failure of a currency that does not possess a tangible form. As time passed, Bitcoin started its proliferation and paved the way for entering the crypto trail we see today. The crypto market had to face its share of ups and downs to establish its industry position. Seeing the 2020 trend, it can be said that crypto is everywhere and is fast growing as a huge business territory.
The recent price rally suggests a whopping surge in the value of Bitcoin, Ether, and Dogecoin. The reports showed that the price of 1 BTC reached $48,226 a day before, signaling the mega-bullish trend for the currency holders. A major reason for this jump can be the interest shown by the richest man alive, Elon Musk. The recent purchase of $1.5 Billion Bitcoin by Tesla Inc. has given a push to the crypto coin’s market dominance. The firm will use Bitcoin as a payment mechanism in its ecosystem, which has fueled other corporations to diversify their investment options through crypto trading.
The rise shown by ETH in the past few days is overwhelming for the investors. The coin was traded at a whopping value of $1,824.59 during the European trading hours on Tuesday. The ETH token has doubled its value in 2021 while competing with Bitcoin’s 58% rise. The surge can be because of the ether futures released by the Chicago Mercantile Exchange. The Ethereum blockchain rules the DeFi domain with its revolutionary decentralized lending and banking tools.
The virtual currency drawing its name from a meme character, Dogecoin has seen a whopping surge since Monday and has managed to become one of the top 10 crypto coins in terms of market value. This sudden rise can be because of the supporting tweets released by Elon Musk and Snoop Dog. The tweets placed Dogecoin at a value of $0.083745, recording a 31% rise. Earlier in January, DOGE enjoyed a 600% surge in its price attributed to Reddit and GameStop portals’ popularity. Apart from that, In the case of Dogecoin price prediction, no analyst can predict the price of Dogecoin as it gains the favorable vote of celebrities like Elon Musk.
Launch of ETH’s CME Futures
The Chicago Mercantile Exchange (CME) went live with the Ether futures contracts on February 7, 2021, for traders. The announcement of the ETH Futures was made in December 2020. The February contract was registered with an opening value of $1,669.75. The futures contracts are cash-settled and depend upon the reference rate of the exchange driven from best crypto exchanges like Coinbase, Kraken, Bitstamp, etc. The reports suggest that these contracts are likely to increase the institutional demand for ETH. The ETH futures contracts have turned tables for Ether and boosted the token’s price value quickly.
Interestingly, this rise in the price of cryptocurrencies has made people invest in them just like gold. They have started seeing crypto as a potential asset that has an assured market value. The investors are shifting their interests towards crypto, citing better security, transparency, and value returns offered by them.
Is this price rally of BTC & DOGE a bubble?
The sudden surge in the price of BTC and DOGE has raised several questions in the concerned minds. Where some assured crypto investors of a bright future, others called it a massive bubble that will soon burst, causing big losses.
In a Twitter post, Michael Burry, the “Big Short” investor, stated that Tesla buying Bitcoin was a planned step and Dogecoin’s price rise in a market bubble evidence. He added that Elon invested in Bitcoin to distract from the Chinese government’s recent regulatory controls on the entity. Elon linked the situation with the lyrics of a song by Led Zeppelin. The markets are sweeping to a bubble in a risky paradigm, and he expects a market crash in the future, added the expert.