Cryptocurrencies got a boost on Friday. For the first time since May, the price of the digital currency Bitcoin temporarily exceeded $ 51,000. Ethereum, the second most valuable crypto currency in terms of market capitalization, was also able to continue its upward trend on the last trading day of the week and further expand its profit streak.
At its peak, the price of the oldest and largest cryptocurrency on the market rose to $ 51,064. Most recently, a Bitcoin on the Coinbase trading platform cost $ 50,538. That is almost 2.3 percent more than the day before. Bitcoin has been growing significantly since mid-July. At that time it had fallen to around $ 30,000.
First warning signs
The price gains of the second most important cryptocurrency, ether, were even clearer. The price of Ether climbed above $ 4,000 for the first time since May. In the course of the day it rose by over four percent. In the meantime, however, there are increasing signs of imminent profit-taking. For example, the RSI indicator is already quoted at 74 points and thus in the overbought area.
Popular addition to the portfolio
Experts pointed to the weak employment trend in the US in August. “Arguments were taken from the US Federal Reserve today to end its ultra-loose monetary policy earlier than planned,” commented analyst Timo Emden from Emden Research. Cryptocurrencies are a popular hedging and diversification instrument and could therefore benefit from a loose monetary policy.
The price fireworks with the cryptocurrencies are burning brightly. However, such rapid price increases are usually followed by a correction. However, these should only be short-lived, as the relative strength should attract more buyers who are currently waiting on the sidelines for a cheaper entry. THE SHAREHOLDER remains bullish for both Bitcoin and Ethereum in the long term.
With material from dpa-AFX.