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Ethereum Surpasses $1,000 – All Time High is Next?

Bitcoin rocketed past its previous all-time high, setting new records on a daily basis. It reached almost $35,000 before dipping back towards the $30,000 mark. There may be room for more upside, or it could crash like it did after it hit an ATH of close to $20,000 in December 2017. Meanwhile, Ethereum broke $1,000 but hasn’t yet reached its ATH of around $1,386 in January 2018. With this in mind, there’s a lot to analyze about ETH, and you have a choice:

  • Stay safe and don’t buy crypto
  • FOMO into BTC if you don’t already hold some Bitcoin
  • Jump into ETH while it is still below its previous ATH

Risk to be Aware Of

There was major whale activity in December 2020, just a few weeks before BTC hit its new ATH. Hedge fund managers made moves greater than $600 million on Coinbase and caused the market to shift in a big way. The value of BTC may rest on whether these funds stick to their guns and HODL their BTC, or if they plan to dump a huge amount of it back into the market after making gains in the hundreds of millions of dollars.

Of note, they bought into both BTC and ETH. So, there are a few moves they could make:

  • Dump all of their crypto assets and tank BTC, ETH and possibly the whole digital currency market
  • Take profits on a large chunk of their BTC, and hold onto ETH while it continues to rise
  • Hold onto everything in the hopes that it will continue to hold at its new level and rise in the future

This isn’t financial advice, but it seems like a logical move would be to take some profits. If they’re in it for the long term, then they won’t dump so much of their holdings at once, where they could devalue what they hold onto. But if this is a quick play, then they could make big moves very soon.

Nobody can read the minds of these hedge managers. But we do know that the economy has tanked thanks to the government response to COVID-19. People are getting free money and the dollar could crash any day. With that in mind, crypto makes good sense as a hedge against inflation. Then again, dollars are still being spent every day.

Keep watching the market, and pay attention to the change of the presidential administration from Trump to Biden. This could affect all markets including crypto. The good news is that Bitcoin dropped in the past, and then it came roaring back.