Record $8.9 billion invested in crypto currencies in 2021written by Bella Palmer
In the year to November 5, nearly $8.9 billion have flowed into crypto products, topping the $6.7 billion in inflows for the whole of last year, data from CoinShares showed on Tuesday
Investors have poured more money into crypto so far in 2021 than they did for the whole of 2020, with record amounts flowing into bitcoin and ether, as well as smaller altcoins like sol and ada, according to CoinShares.
In the year to November 5, nearly $8.9 billion have flowed into crypto products, topping the $6.7 billion in inflows for the whole of last year, data from CoinShares showed on Tuesday.
Bitcoin has seen $6.5 billion inflows in the year to date while ether has seen $1 billion in flows. Solana token sol has logged $154 billion inflows, making it the third most popular cryptocurrency of 2021, while cardano's ada has seen $92 billion worth of inflows.
November has brought a wave of bullishness to the cryptocurrency market. Bitcoin and ether have hit new highs near $70,000 and $5,000, respectively, this week, while smaller tokens have shot higher, bringing the total value of the crypto market to $3 trillion for the first time.
Crypto coins and products have become more widely accepted across the world. The fact more key exchanges in the US, Europe and even Australia accept crypto products has fuelled the rise in investment activity over the year, according to James Butterfill, CoinShares investment strategist.
Bitcoin’s breakout above $63,300 on Monday to an all-time high is “constructive technically” and we should see prices rise to $72,000 initially and then $77,600, according to FSInsight, a markets strategy and research firm.
FSInsight notes that bitcoin momentum isn’t overbought yet on daily or weekly timeframes.
A breakout in bitcoin’s market-cap dominance chart means it may outperform altcoins in the near term, FSInsight said. This represents a likely shift to higher market capitalization into bitcoin than altcoins in the near future.
Bitcoin and ether cycles show upward progress into end of November before a peak in price that could persist into 2022, FSInsight said.
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