Ethereum Hits All-Time High Surpassing $4700... Bitcoin Nears Previous Peak

Reflected Expectations from DeFi·NFT Market Revitalization
Some Caution Volatility Should Be Noted

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kim Suhwan] Ethereum prices have surpassed $4,700, reaching an all-time high. Bitcoin has also exceeded the $66,000 mark, racing toward its previous peak of $66,900.

Analysts attribute the price surge to recent enthusiasm surrounding the rise of decentralized finance (DeFi) and the activation of the non-fungible token (NFT) market.

According to CoinDesk as of 6:15 AM Korean time on the 9th, Ethereum is trading at $4,775.17, up 3.14% compared to 24 hours earlier.

Ethereum has set a new record high after nearly six months since approaching the previous peak of around $4,200 in May.

Bitcoin is also experiencing a rally.

At the same time, Bitcoin is trading at $66,304.19, up 5.55% compared to 24 hours ago.

Bitcoin’s previous highest price was $66,900, recorded at the end of last month.

Experts analyze that the recent rise in Ethereum and Bitcoin prices reflects growing expectations around DeFi, which is emerging as a new financial system.

DeFi refers to a blockchain-based financial network operating without central bank control.

Ethereum is known to play the most crucial role within the DeFi system, as most DeFi platforms utilize the network provided by Ethereum.

Additionally, the NFT craze that began earlier this year is also seen as a driving force behind the rise in Ethereum and Bitcoin prices.

In March, a digital NFT artwork was sold for $69 million (approximately 81.7 billion KRW) at Christie’s, a leading auction house in the UK.

The increasing popularity of NFTs has also driven up the prices of Ethereum and Bitcoin, which are used for NFT transactions.

Last month, the U.S. authorities approved the launch of the first Bitcoin futures exchange-traded fund (ETF), sparking expectations for Bitcoin’s inclusion as a mainstream asset and providing momentum for its price increase.

As a result, there is speculation that Bitcoin could surpass $70,000 for the first time ever.

Mikkel Morch, director of cryptocurrency hedge fund ARK36, stated in a letter released that day, "Bitcoin’s upward trend appears to be the result of increased market demand recently, and selling pressure is currently low," forecasting a high possibility of breaking through $70,000.

However, experts caution about the volatility of cryptocurrencies.

CNBC reported, "There is no clear reason explaining the cryptocurrency surge today," adding, "It is common for prices to surge or plunge within a 20% range."

In particular, concerns are rising that Ethereum’s volatility could increase amid expected regulatory pressure targeting the DeFi system.

Previously, the Wall Street Journal (WSJ) reported that the U.S. Securities and Exchange Commission (SEC) has launched an investigation into Uniswap, a decentralized asset exchange based on Ethereum. Authorities are reportedly examining how investors seek investment information and utilize the platform on Uniswap.

In September, Michael Hsu, acting head of the U.S. Office of the Comptroller of the Currency, compared DeFi to the financial fraud that triggered the 2008 financial crisis, criticizing, "Cryptocurrency and DeFi resemble the credit default swaps (CDS) of the early 2000s." He further described DeFi as "full of fraud" and expressed concern.

This content was produced with the assistance of AI translation services.