Cryptocurrency prices today surged with Bitcoin surging nearly 3% to $39,267 while the second-biggest cryptocurrency after Bitcoin, ether was up more than 6% to $2,677, as per CoinDesk. Over the past 24 hours, the digital currency Ether climbed to its highest level in nearly two months during the midst of a software upgrade that will trim the pace at which fresh tokens are minted. Still, Ether is well off its record highs.
In some ways, the optimism about the upgrade, known as London or EIP-1559, resembles the hoopla surrounding past reductions in the block rewards for Bitcoin miners. While so-called halvings were planned events, Bitcoin typically rallied in anticipation that demand would either remain steady or increase while the pace of issuance slowed, reported Bloomberg.
Dogecoin, on the other hand, rose over 1% to $0.19 whereas other cryptocurrencies like Cardano, Stellar, XRP, Litecoin also surged over the last 24 hours.
A lot of crypto investors took advantage of the recent spike in bitcoin and booked profits worth $2.09 billion last week, suggesting that there is a belief that the recent spike in the world’s biggest cryptocurrency was only a bearish relief rally.
According to a note by blockchain data provider Glassnode, after an extended period of very negative sentiment, and sustained downwards price action, bitcoin traded high with gusto last week. “A key question is whether this is a disbelief rally (where everyone doubts the new bull trend), or simply a bearish relief rally in a larger time-frame downtrend,” Glassnode said in a note.
Separately, Cryptocurrency investment products and funds posted outflows for a fourth consecutive week, the bulk of which came from bitcoin products, which also experienced its fourth straight weekly outflow, data from digital asset manager CoinShares showed as reported by Reuters.
(With inputs from agencies)
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