Janet Yellen’s critical comments on the crypt coins put a damper on the overall market just as the price of Ethereum reached a new all-time high.
On Tuesday, Ether (ETH) experienced a bullish breakout that pushed the price to a new all-time high of USD 1.428.
While the move may have been technical, Etheruem’s fundamentals continue to improve, as less than a month after the launch, there is now USD 3.8 billion in ETH locked in the Eth2 block chain.
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The rapid rise in price has clearly attracted the attention of professional traders, but Cointelegraph analyst Marcel Pechman warns that Ether’s rise to a new high was also accompanied by a large increase in short positions.
Ether’s break to a new high had little effect on Bitcoin’s price and it seems that the critical comments of former U.S. Federal Reserve Chairman Janet Yellen had a negative impact on the overall market today.
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Yellen, who has been nominated as President-elect Joe Biden’s secretary of the treasury, said that crypto currencies are being used „primarily for illicit funding. She made those comments during a hearing with the Senate Finance Committee and also advocated a major fiscal stimulus by telling Congress to „act big“ when it comes to helping the ailing U.S. economy.
Institutions remain optimistic
Daily performance of the crypto-currency market.
Despite today’s slight correction, institutional investors remain optimistic about Bitcoin’s long-term prospects. A recent projection by hedge fund Vailshire Capital Management stated an „imminent breakout“ and PlanB, the creator of the popular Stock-to-Flow model, has predicted that Bitcoin’s price could close the month at around $48,000.
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Unlike the crypto market, traditional markets ended the day showing strength, as Wall Street sees Yellen’s call for additional economic stimulus as positive. The S&P 500, Dow and NASDAQ ended the day strong after Yellen’s statements, citing 0.81%, 0.38% and 1.5% increases respectively.
Daily chart of the BTC/USD pair.
Despite the negative opinion expressed by Yellen, positive developments for several blockchain projects helped to raise the prices of some altcoins.
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The price of Enjin (ENJ) rose by 71% after the project was legally authorized for marketing by the Japanese Virtual Currency Exchanges Association (JVCEA). Apart from Ether (ETH), the top 20 currency with the best performance in the last 24 hours was Bitcoin Cash (BCH), with an increase of 7.46% and trading at USD 546.
The capitalization of the entire cryptcoin market is now USD 1.046 billion and Bitcoin’s dominance rate is 65%.