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Cryptocurrency news: ETH eyes new all-time high as BTC lags

By Daniela Ešnerová

11:30, 2 December 2021

Illustration of ether (ETH) logo
Ether (ETH) is trading just 2.20% under its all-time high – Photo: Shutterstock

Ether (ETH) has recovered from the losses that flooded cryptomarkets in the second half of October. On Thursday, the cryptocurrency’s 24-hour maximum reached $4,761.07 – just 2.20% shy of its record of $4,891.70 on 10 November. Meanwhile, Bitcoin (BTC)’s 24-hour high is 16.50% below its all-time record.

The two biggest cryptocurrencies set new records for themselves on 10 November. The cryptomarkets had already been rallying when the US announced its 30-year-high inflation data. Bitcoin, which is often cited as an inflation hedge, shot to unforeseen levels and ether followed its lead. 

Cryptocurrencies then retreated over the following days.

On Friday, they suffered a further hit as news of a new coronavirus variant spread and spooked the markets. The two biggest altcoins, ETH and binance coin (BNB), fell more than bitcoin, which was a sign “that investors view these assets as further out on the risk curve than bitcoin”, according to analysts from Arcane Research. Both altcoins quickly rebounded, however.

BCH/USD

392.05 Price
+5.420% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 2.50

ETH/USD

3,425.37 Price
+6.920% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 6.00

BTC/USD

63,636.60 Price
+5.750% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 106.00

XRP/USD

0.54 Price
+0.980% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.01168

On Thursday morning London time, ether was up 4.24% week on week, while bitcoin was down 2.78% over the same period.

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Chart of the day: ETH vs BTC recovery

Chart representing performance of bitcoin (BTC) and ether (ETH) over the last three weeksBitcoin (BTC) is trading some 16.50% below its record high, while ether (ETH) hovers just 2.20% below its own record – Credit: TradingView

Other crypto news

  • Federal Reserve chair Jerome Powell hinted that a report on central bank digital currencies (CBDCs) will come out in the coming weeks. Over 50 central banks are experimenting with CBDCs. The UK’s Bank of England is consulting on its own CBDC, nicknamed “britcoin”.
  • At least 64 crypto companies have reached unicorn status (a start-up with a valuation over $1bn), Arcane Research announced, showing strength in the nascent market. Moreover, 2021 saw over 150 merger and acquisition deals related to crypto companies, according to Arcane.

Quote of the day

A post by a Reddit user shows the other side of the coin, as they lament the difficulty of trying to time the markets. 

“Am I really that good at buying the top?”

Winners and losers

  • Terra (LUNA) is up 6.14% over the last 24 hours and 54.41% week on week. LUNA, the native token of the Terra blockchain project, added a new record of $65.41 in the last 24 hours, and is now the twelfth biggest cryptocurrency by market capitalisation.
  • Avalanche (AVAX) is down 6.46% and 8.04% over the last day and seven days of trading respectively.

Read more: Ethereum (ETH) hits an all-time high, again

Markets in this article

AVAX/USD
Avalanche / USD
27.6556 USD
1.528 +5.920%
BTC/USD
Bitcoin / USD
63636.60 USD
3457.45 +5.750%
ETH/USD
Ethereum / USD
3425.37 USD
221.35 +6.920%

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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