More than US$66 thousand (R$366.3 thousand). Bitcoin surpassed its previous maximum mark, of US$ 64,863 (R$ 360 thousand), reached on April 14 of this year, this Wednesday (20). In the early afternoon, the currency was quoted at US$ 66,580 (R$ 369.5 thousand) — an increase of 5% in 24 hours. The asset has been showing bullish movement since the end of last week.
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In the last seven days, the cryptocurrency has earned $10,000 (R$55,500) in value (about a 20% increase). In 2021, the accumulated appreciation has already reached 127%. Other cryptos are also on the rise. The second largest crypto in the world, Ethereum, already exceeds US$ 4,095 (R$ 22,700) with an increase of more than 7%. The total market capitalization already exceeds US$2.56 trillion (R$14.2 trillion).
Another market movement was the approval of the country’s first Bitcoin index fund (Exchange-Traded Fund – ETF) by the US Securities & Exchange Commission (SEC). The ProShares Bitcoin Strategy ETF does not invest directly in Bitcoin, but trades cryptocurrency futures contracts traded on the Chicago Derivatives Exchange.
The ETF had the second best debut performance of an index fund in the country’s history. On Tuesday (19), when it started trading on the New York Stock Exchange, it registered US$984 million (R$5.46 billion) in traded volume. It was second only to BlackRock’s US Carbon Transition Readiness ETF, which reached US$ 1.16 billion (R$ 6.4 billion) in volume when it debuted in April.
The product is seen as essential to attract investors to Bitcoin, especially institutional ones. In addition to lower rates than traditional funds, ETFs also have greater liquidity and are regulated by the financial market. This also serves as a gateway for smaller investors who are still afraid to buy cryptoactives.
For the Binance Research team, the launch of the ProShares Bitcoin Strategy ETF should lead to the creation of other similar Bitcoin funds. “Grayscale has already asked to convert its flagship, the Bitcoin Trust fund, into an ETF,” he points out.
Segment specialists assess that, until the end of the year, the highs should continue. For Rafael Izidoro, CEO of Rispar, 2021 has been very positive for the maturation of the cryptocurrency market. “With the global economy in crisis, eyes are increasingly turning to Bitcoin as an excellent investment, a store of value and a refuge against inflation,” he says. “This upward cycle is not over yet”, he reinforces.
Ricardo Dantas, from Foxbit, believes in new records in the coming months and highlights factors that contributed to the current movement. “The fact that El Salvador adopted Bitcoin as its legal currency and that the mining of the currency left China were positive for the market.”
The greater adoption by the institutional market in general is one of the reasons mentioned by Vinicius Frias, CEO of Alter and director of Méliuz, for the high. He recalls that, in the last three months, the cryptocurrency went from US$ 30 thousand (R$ 166.5 thousand) to the current almost US$ 67 thousand (R$ 371.8 thousand). “Furthermore, it is an asset against the monetary expansion that has hit the world since the beginning of the pandemic.”
There are those who bet on an even more aggressive rise until the end of the year. “The price could reach US$150,000 (R$832.5 thousand) at the end of December,” says Bernardo Schucman, Senior Vice President of Data Center Operations at CleanSpark.
Even so, it is necessary to be cautious. “There is considerable liquidation risk in the short term. In this case, the value can quickly retreat”, recalls Henrique Teixeira, country manager of Grupo Ripio. “On the other hand, case studies and utility have been expanding rapidly, which can act as a catalyst for upcoming highs to reach new heights.”