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Bitcoin near all-time high as crypto currencies rally

written by Bella Palmer
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Bitcoin climbed more than 4% to $66,170, approaching the $67,016.50 level reached on Oct. 20, while ether was at a record top of $4,768.07

Bitcoin rallied toward its all-time high on Monday and ether jumped to a fresh record as crypto currencies rode a wave of momentum, flows, favourable news and inflation concerns.

Bitcoin climbed more than 4% to $66,170, approaching the $67,016.50 level reached on Oct. 20, while ether was at a record top of $4,768.07.

Ether is up nearly 59% since the start of October and bitcoin nearly 51% as investors have cheered last month's launch of a U.S. futures-based bitcoin exchange-traded fund and sought exposure to an asset class sometimes regarded as an inflation hedge.

Falling real yields, as traders brace for inflation, adds to the attractiveness of assets such as gold and crypto currencies which do not pay a coupon, said Kyle Rodda, analyst at broker IG Markets, adding that the mood in the sector has also been good.

Financial institutions want to be a part of it, regulators don't want to clamp down on it too much, he said. We're almost past the inflection point, where it's part of the system and its going to be very, very hard to extricate it.

In recent weeks, Australia's biggest bank has said it will offer crypto trading to retail customers, Singaporean authorities have sounded positive on the asset class and spillover from a positive mood in stocks has also lent support.

Last week, New York City Mayor-elect Eric Adams pledged Nov. 4 he would accept his first three paychecks in bitcoin when he formally takes office next year.

Adams made the claim in response to a tweet from Miami Mayor Francis Suarez, who said earlier this week that he would take his next check "100% in bitcoin." The incoming New York City mayor suggested his administration will take a friendly stance toward crypto currencies.

In New York we always go big, so I’m going to take my first THREE paychecks in Bitcoin when I become mayor, Adams wrote on Twitter. NYC is going to be the centre of the crypto currency industry and other fast-growing, innovative industries! Just wait!

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