Deputy editor-in-chief of Consensus Magazine Daniel Kuhn noted that today is a significant date in the history of cryptocurrencies. He recalled that exactly 2 years ago, on November 9, 2021, the Bitcoin (BTC) rate reached its all-time high on the market (ATH).
According to the expert, this situation is a matter of debate. Depending on the data provider, values vary. The Coinbase exchange names the maximum amount at $68,569 as of the evening of November 8, 2021. CoinMarketCap reports all-time high at $66,953. CoinDesk estimates quotes above $67,000.
The expert is inclined to believe that the peak was reached at around $69,000. This price doesn't really matter. At that time, all that mattered was that the BTC rate was rising. Many sincerely thought that it would not stop, and the value of the cryptocurrency would reach $100,000.
It is now clear that this price rally was caused by the COVID pandemic, investor boredom and historically low interest rates in the US. That the cryptocurrency could be affected by macroeconomic fluctuations was “a bitter pill to swallow.”
At that time, there were not as many real use cases for digital currencies as there are today. According to the expert, the main innovations that emerged as a result of more than a decade of technical research, billions in venture funding and tens of thousands of startups were financial products such as “perpetual swaps” and new indices, as well as pioneering ZK technologies.
Today, according to Kuhn, cryptocurrency has become somewhat separated from the economy. BTC hit its all-time high during the same period that the benchmark S&P 500 stock index peaked in a decade-long bull run. However, it should be noted that the price of BTC has increased by more than 100% since the beginning of the year, as have the prices of leading altcoins.
The researcher noted that the current hype around BTC is driven by a “narrative” of growing institutional interest. A number of major Wall Street companies, such as BlackRock, VanEck and Fidelity, are ready to launch cryptocurrency-based exchange-traded funds.