Crypto market tops US$2.7t as rally reaches beyond Bitcoin

Oct 21, 2021

[SINGAPORE] Optimism about digital assets stoked by Bitcoin's run to a record high has helped push the overall value of cryptocurrencies to an all-time peak of more than US$2.7 trillion. That's a climb of about US$200 billion from the last high in May for a sector that now spans almost 10,000 coins, according to data from tracker CoinGecko. The ascent shows how bets on cryptos are spreading beyond Bitcoin amid enthusiasm about more mainstream adoption of digital assets following the launch of the first Bitcoin-linked exchanged-traded fund in the US.

Ether - the largest token after Bitcoin - rose as much as 3.3 per cent on Thursday (Oct 21) to within striking distance of its highest value of almost US$4,400 achieved in May.

Analysis of chart patterns suggests Ether, along with Solana, Polkadot, Tezos and Binance Coin, are all "close to their own breakouts", strategists at Fundstrat said in a report on Wednesday (Oct 20).

Bitcoin hit a peak of almost US$67,000 on Wednesday before dipping below US$65,000 as at 7.15 am in London on Thursday. The question now is whether the famously volatile asset will push on or succumb to a bout of selling as speculators take profits.

A reversal would likely also dent sentiment in the crypto market as a whole, which suffered a rout mid-year that depressed its value to some US$1.3 trillion.

For now bullish sentiment is ascendant. Pankaj Balani, the chief executive officer of crypto-derivatives exchange Delta Exchange, said he expects Bitcoin to outperform other tokens and predicted the largest cryptocurrency will breach US$100,000 before year end.