Ethereum rocket eclipses Bitcoin

Business | Bloomberg and Victor Zhong 26 Jan 2021

Ethereum, the world's second-biggest cryptocurrency, surged to a record high US$1,476.12 (HK$11,513.74) yesterday morning, a rise of more than 96 percent so far this year, said Coindesk.

Bitcoin saw only a 13 percent increase during the period.

Cryptocurrency enthusiasts counting on Bitcoin to bounce back above the US$40,000 level face a challenge due to faltering demand for the biggest fund tracking the digital asset, according to JPMorgan, Bloomberg reported.

The pace of flows into the US$20 billion Grayscale Bitcoin Trust appears to have peaked based on four-week rolling averages, JPMorgan strategists led by Nikolaos Panigirtzoglou said in a note.

The fund slid 22 percent over the past two weeks through January 22, outpacing a 17 percent drop in Bitcoin in the same period.

"At the moment, the institutional flow impulse behind the Grayscale Bitcoin Trust is not strong enough for Bitcoin to break out above US$40,000," the strategists said. They added that the "risk is that momentum traders will continue to unwind Bitcoin futures positions."

Ethereum rose 7.94 percent to US$1,426.52 and Bitcoin also jumped 3.15 percent to US$33,553.83 by 20.37pm yesterday, Coindesk said.

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