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Ether turns negative, bitcoin falls after hitting new record
Omar Marques | Lightrocket | Getty Images
Ether reversed its downward trend late Tuesday afternoon as bitcoin’s price retreated after its Brief race to new all-time record.
The price of ether fell 5% to $3,412.64, according to Coin Metrics. Bitcoin fell about 8% after hitting a record high above $69,000.
On Tuesday, ether climbed 6.5% to $3,828.81, before bitcoin’s plunge put pressure on the rest of the cryptocurrency market. Many of the largest cryptocurrencies by market cap fell, including Binance CoinRipple XRPand tokens related to Cardan And PolygonEven meme coins, which exploded on Monday, have fallen.
Investors, however, remain optimistic about ether’s near- to medium-term performance. It has benefited from the recent rally in bitcoin and tech stocks. A technical upgrade to the network this month and the possibility that ether spot ETFs will soon be available for trading in the U.S. are also giving long-term investors confidence. Ether is still up 51% for the year, compared to 45% for bitcoin after its recent rally.
“Given the relative difference in market cap between ether and bitcoin, investors likely see additional growth potential in ETH relative to bitcoin in a world where both ETFs exist and are collectively viewed as an asset class that will benefit from continued allocations from investment advisors and wealth managers,” said David Wells, CEO of Enclave Markets.
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