Bitcoin tagged $ 40,000 and Ethereum approached its all-time high before the market declined.
1 trillion dollars
As protesters attacked Capitol Hill last Wednesday, Bitcoin surpassed $ 40,000, pushing the total crypto market value beyond the $ 1 trillion threshold.
The narrow victory of the Democrats over the Senate further fueled the Bitcoin rocket and created expectations that a unified government legislature would pave the way for financial incentives of up to $ 3 trillion.
This has pushed the crypto market into extreme acceleration. Stellar doubled before ending the week with 50% gains, and Ethereum hit its all-time highs, returning to $ 33,000 before Bitcoin put an end to entertainment.
Expectations for cryptocurrency increased after reports emerged that Ukraine chose Stellar blockchain for its CBDC, and OCC announced that American banks could use public blockchains and stablecoins as settlement infrastructure.
Ethereum is approaching its all-time high
Ethereum surged over 50% during the week, excited traders with the expectation of moving above its all-time high of $ 1,420.
The second largest crypto reached $ 1,350 before a drastic retracement dropped the cryptocurrency to $ 1,020.
However, other measurements have already reached new heights. Google “Ethereum” searches were set to break 2017 levels, market cap set a new record, and network fees followed. This suggests that high activity levels may soon cause prices to rise above current levels.
After rising more than 40% to double its all-time high in the first eight days of 2021, Bitcoin is now in a pullback game as it hovers around $ 33,000.
In previous bull rallies, Bitcoin fell between 20-40% before continuing its uptrend. Such a setback could lower prices as low as $ 25,000.
However, according to legendary investor Bill Miller, the rally is not over yet. He told CNBC on Friday that investors should expect Bitcoin to be “very, very volatile”, but also expect the cryptocurrency to increase “50-100%” in the next 12 to 18 months.
The recent decline is a breather for the Bitcoin and cryptocurrency market.