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ETH-USD BTC-USD COIN HOOD ADA-USD DOGE-USD LTC-USD Yahoo Finance Video Ethereum hits highest levels since May September 1, 2021, 11:14 PM In this article:
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CoinDesk Learn Editor Ollie Leech explains why Ethereum price jumped on Wednesday.
Video Transcript SEANA SMITH: It’s time for a “Crypto Corner,” and we want to take a look at Ethereum today, because this has really been an out-performer over the last several weeks, adding to gains today.You can see it up nearly 9%, breaking above $3,500, hitting the highest level that we have seen in more than three months.So let’s bring in Ollie Leech, he’s CoinDesk’s Learn Editor, for a little bit more on some of this excitement that we’ve been seeing and the theory.I mean, I guess, Ollie, just from your perspective, what do you think is behind this renewed optimism? Because I was taking a look at the chart.
It’s up 44% in the past month alone.
OLLIE LEECH: Yeah, exactly.I mean, we’ve just seen it break out of that 24-day range between the $3,000 and $3,300 levels.And like you said, you know, it’s testing levels you know $3,800 level.We haven’t seen that since May.
So yeah, the moment we a look back at last month, Ethereum recently completed it’s London hard fork.This is like a non backward compatible upgrade that introduced a number of new features.
The big one being this introduction of a base fee to kind of make gas prices more predictable.And it’s also going to stop burning or tapering a lot of the Ethereum’s supply growth.And we’ve already seen $570 million worth of ether’s been burned since the hard fork activated, about 43% has been cut from its net supply growth.So it’s had a huge effect.Obviously, the demand for Ethereum is rising, but its supply is now starting to be cut back a little bit.
And I think this is what’s driving a lot of that.
BRIAN CHEUNG: Hey, Ollie, it’s Brian Cheung here.I want to ask you about Bitcoin.The trend’s been a little bit different on that front, but we have seen some sort of level around 48,000 recently.Where do you think the next steps are for the big crypto there?
OLLIE LEECH: Yeah, we’re still waiting to see it punch through that $50,000, psychological $50,000 mark.Like we’re seeing now, a lot of interest that used to be in Bitcoin is now all in Ethereum right now, DeFi, NFTs are really starting to push now.We’re seeing DeFi now over $92 billion worth of crypto assets locked away in its protocols.
And NFTs are now starting to boom and have that second wave.
Story continues We talked about a few weeks ago that GameFi, this kind of new sector that’s emerging, is really starting to take a lot of interest away from Bitcoin.It’s now starting to really push that towards these decentralized application platforms, and Ethereum is one of the leading ones in that space.
SEANA SMITH: Ollie, just in terms of some of the headwinds that could potentially be faced here with crypto more broadly speaking, we’ve talked about regulations in the past.For the most part, it seems like investors in crypto have been able to brush off major concerns there.Do you think that that’s something that’s going to continue to be the case? Or will that we see that I guess weigh on prices potentially here in the future?
OLLIE LEECH: Yeah, it seems to be a trend now that investors in general just don’t seem to be fazed by a lot of the market movements that we used to get moved by.
And we saw that China announced the mining, obviously, the mining clamp down, sorry.And that started to see prices.But then other things like the infrastructure bill, for example, in America, didn’t seem to affect us at all.
And in fact, prices have stabilized.
We haven’t seen a massive move down particularly on Bitcoin, Ethereum, and other things is doing really, really well.Who knows?
It seems like regulation now is something that we’re not really fazed by, especially in the West.Potentially in China, obviously that seems to be a bit more in that way.Who knows? It’s a really interesting space.
We seem to be pushed now more by social media, by hype, it seems to be driven by a lot of things that are happening, influencer levels, you know, like Elon Musk and things like that that seem to be really driving the market more right now.
BRIAN CHEUNG: Ollie, you mentioned just earlier that DeFi and NFTs, all those things may be taking attention away from Bitcoin.That’s kind of interesting to me.Do you think it’s kind of a zero sum game now in the crypto space where people who are moving assets from one crypto to another are kind of switching as opposed to new entrants into the crypto space, where at one time, it was like anything that was tangentially crypto was good for all of the crypto asset classes?
OLLIE LEECH: Yeah, I mean, that’s still true, right? So when Bitcoin does well, it usually lifts the rest of the market.But we see a lot of these cycles are going on in the crypto space, and this has been going on for a number of years.
You’ll see Bitcoin rise while alt coins will usually take a bit of a backseat.And then we’ll see this kind of flipping, where alt coins will really lead the rally and Ethereum will be in that mix.
But now with DeFi and NFTs, they’re such a big part of the space now, that we’re seeing, when these parts start to do really, really well, we’re seeing Bitcoin start to drop.
And then obviously, when we have things like the B Word conference and Jack Dorsey and Cathie Wood, as you just mentioned, all these guys getting together, that really lifted the markets, and that starts to push Bitcoin again.
But now we’re still waiting for something, you know, something else now to push Bitcoin forward.We had MicroStrategy as buying up Bitcoin, but that story seems to not be pushing the market like it used to.So we’re now waiting to see, is another company, another big company going to add it to its balance sheet.ETFs are obviously a big thing that will potentially drive the price of Bitcoin once we get one, if and when we see one approved in the US.
But the NFT space, the DeFi space, there’s so many new updates coming out right now.
We’ve seen Solana and Cardano about to join the space.There’s a lot of news driving that alt coin cycle right now, and I think this will probably extend a little bit longer until something comes along to push Bitcoin.
SEANA SMITH: Ollie, you mentioned the fact that we could potentially see Bitcoin ETFs here approved in the US.
I guess from your research and from what you’ve read and the experts that you have talked to, I guess how big of an opportunity is this potentially for investors?
OLLIE LEECH: I think it’s massive.You know, we’ve already seen the ETFs launch in Canada and how well they’ve done, and it’s just, if we can have that again in America, it will give American investors, institutional investors a huge amount of exposure to Bitcoin.And will potentially be physically settled in an ETF so that when an investor purchases a share of that ETF, his fund will actually go out and buy Bitcoin.
So it’s kind of an indirect exposure.But they’ll actually have it on their balance sheets.
So yeah, a huge amount.And I think everyone’s really waiting for that adoption to kick in, and there’s been so, we’ve been waiting for so long now, I think that that would just really lift the market as and when we have one, where potentially talk of this Bitcoin futures ETFs and we’re starting to see those now.So who knows? Maybe that’s a predecessor to this.We’ll have to wait and see how that goes.
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