The prices of popular digital currencies Bitcoin and Ethereum soared to new highs on Monday evening, with BTC touching above its previous record of $67,700. Bitcoin hit an all-time high of $68,530.34 early on Tuesday morning before retreating slightly. The digital currency was trading at $67.983.10 as of 6:31 a.m. GMT.
Analysts and traders worldwide have remained bullish on cryptocurrencies, and Bitcoin in particular, despite the fact that its price sunk some 12 percent right after hitting its previous high in October. Unlike fiat currencies or commodities, it is often difficult to identify the factors that cause crypto volatility. Nevertheless, many analysts continue to believe that the industry as a whole, and Bitcoin in particular, will continue to rise higher in the coming weeks.
Ether, the native token of Ethereum's blockchain, also hit new highs on Monday, trading over $4,800 for the first time, with a high price of $4,829.04. The digital currency was trading at $4,812.97 early Tuesday morning.
The jump in these prices prompted other digital currencies and related assets to rise as well. The recently debuted ProShares Bitcoin Strategy ETF which began trading on October 19, 2021, was up over 8 percent during Monday's New York trading session. Solana and Cardano have risen substantially as well, with Solana gaining 23 percent in the past week, and Cardano up just under 10 percent in the same period.
Bitcoin bulls are now predicting a breakout beyond the $70,000 mark, with long-term expectations by JP Morgan for the cryptocurrency to hit $73,000 by the end of 2021, and $146,000 in the long term.
New York City Mayor Elect Eric Adams has been extremely vocal about the need to teach about cryptocurrency and blockchain technology in schools, a move that, if adopted, could dramatically impact the way people understand and use digital assets. Until now, many consumers and businesses have been hesitant to adopt the technology, most commonly due to lack of understanding about how it works. Adams has said that he will accept his first three paychecks in Bitcoin and that he would work to bring widespread adoption of Bitcoin to New York City businesses in a thoughtful and appropriate way.
Crypto bulls predict that digital coins have significantly more room to run, as global adoption has barely begun. Bears, however, worry that prices will be pressured by regulatory issues and difficulty in rolling out digital wallets on a large scale. The environmental costs of farming digital currencies has also been an issue as many countries look for ways to reduce emissions. According to a report by CNBC, Bitcoin mining accounts for 35.95 million tons of carbon dioxide emissions annually, about the same emissions levels as New Zealand. As countries continue pledging to reduce emissions, it will become more difficult to mine cryptocurrencies, which will either lead to a rise in prices as resources become limited, or will prevent digital currencies from enjoying the widespread adaptation that the bulls are hoping for.