Bitcoin fell slightly in Asian hours on Thursday, a day after marking an all-time high on optimism around the launch of the first US bitcoin futures ETF.
The world’s largest cryptocurrency was last down 1.3% at US$65 184 after hitting a record $67 016 on Wednesday, but still above a previous peak of $64 895 seen in April.
“We think its going to go higher and we can get to $80 000 or $90 000 by the end of this year easy, but that won’t be without volatility,” said Matt Dibb, COO of Singapore-based Stack Funds.
In the past few days, he said, traders were starting to pay high rates to borrow to buy bitcoin futures, “and that’s a sign that we could be a bit overextended, and there could be a pullback to come”.
He added he anticipated traders would rotate out of bitcoin and into major “altcoins” – other cryptocurrencies.
Ether, the world’s second largest cryptocurrency, rose 1% to $4 203 and there were also sharper gains in smaller tokens.
Market players say the latest wave of buying has been supported by the launch of the first US bitcoin futures-based exchange-traded fund with investors betting this will open a path to greater investment from both retail and institutional investors.
Existing bitcoin exchange-traded funds and products have seen sharp inflows since September.
Average weekly flows to bitcoin funds totalled $121.1-million in October, up from $31.2-million a month earlier, data from London-based CryptoCompare shows.
The three months prior to September had seen outflows following steep losses for bitcoin in May and June. — Reported by Alun John, (c) 2021 Reuters