Cryptocurrencies: Bitcoin Breaks $35,000 – dshort

This weekly update tracks some of the largest cryptocurrencies by market share: bitcoin and ether. We’ve also included XRP, as it was one of the largest cryptocurrencies when this series began. According to Wikipedia, a cryptocurrency is “a digital asset designed to work as a medium of exchange that uses cryptography to secure its transactions, to control the creation of additional units, and to verify the transfer of assets.” Cryptocurrency is a young asset class that has developed a reputation for price volatility however there are ETFs that could help mitigate risk for those investors seeking crypto exposure.

Bitcoin was the world’s first cryptocurrency and decentralized digital currency. The first bitcoin transaction occurred in early 2009 and has since grown worldwide. Ether is another cryptocurrency run on the Ethereum blockchain platform and has the second largest market share, despite being the newest of the three with its launch in July 2015. XRP, which is owned by Ripple and launched in 2012, was one of the larger cryptocurrencies for some time until new coins joined the market. We’ve included it here for reference.

The third-largest market share of cryptocurrency, tether, is a token “backed by actual assets” which includes one US dollar, one euro, or loans to affiliate companies and is controlled by the owners of Bitfinex. It’s a controversial cryptocurrency due to its alleged manipulation of crypto pricing. It is called a “stable coin” because it was designed to always be worth $1.00. We do not chart it because its price rarely changes.

For a better understanding of crypto market cycles, read more here.

The Latest Crypto Data (through November 7, 2023)

Bitcoin’s price continued to rise this week, breaking $35,000 for the first time since May 2022. BTC is now up ~111% year to date. Some crypto market observers believe this year’s rally is the start of something even greater and that Bitcoin could continue this momentum over the next few years.

Bitcoin daily price this year

XRP’s price rose sharply this week as it briefly ticked above $0.70 for the first time since August. XRP is now up over 100% year to date.

XRP daily price since 2017

Ether posted its highest close in over three months, finishing just under $1,900. ETH is now up ~56% year to date.

Ether daily price since 2017

An index has been created in order to chart these three cryptocurrencies together, considering their significantly different pricing histories. Ether tops the chart, i.e., the price of an ether has changed the most out of all three cryptocurrencies.

Bitcoin, Ether, and XRP indexed

ETFs associated with cryptocurrencies include: ProShares Bitcoin Strategy ETF (BITO) ProShares Short Bitcoin Strategy ETF (BITI), VanEck Ethereum Strategy ETF (EFUT), and Bitwise Ethereum Strategy ETF (AETH).

What’s next in the crypto ETF market? Find out here.

Read more updates by Jen Nash

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About the Author: Daniel