Will Bitcoin and Ethereum Hit New All-Time Highs by End of 2021?

Bitcoin (BTC) and Ethereum (ETH) have both hit new all-time highs in Q4/2021 on the back of good news for both cryptocurrencies and positive price momentum in the broader crypto markets. But will the two leading digital assets see another all-time high before year-end?

Will We See An End-of-Year Rally?

On November 10, the price of bitcoin hit an all-time high of $68,622, while the price of ether hit an all-time high of $4,844, putting every BTC and ETH holder’s investments into the green.

Bitcoin was able to carry on the positive momentum from the first-ever Bitcoin ETF listing in the US from October into November, with a wave of positive adoption news from a range of notable companies as well as athletes and politicians who want to be paid in bitcoin.

Cryptocurrency trading has jumped straight into the mainstream in 2021 and with that, more traders are also looking to crypto CFDs to speculate on the price fluctuations of these dominant digital currencies.

Additionally, rising inflation rates in the US and many other parts of the world are pushing more and more people into bitcoin as the digital gold has established itself as an excellent store of value and hedge against inflation.

What’s more, there has been more bitcoin-positive news coming out of the “Bitcoin nation” El Salvador, where President Nayib Bukele has announced plans to issue a bitcoin-backed government bond and plans to build a tax-free Bitcoin City. Developments like these in El Salvador could push other countries to adopt bitcoin as legal tender and become a hub for the global bitcoin economy.

But Bitcoin’s not the only cryptocurrency that has had a good second half of the year. Ethereum has also had an excellent few months, with numerous price-positive developments.

While it’s no secret that Ethereum is struggling with high gas fees and an occasionally congested network, solutions are being implemented to fix these issues while Ethereum’s core devs are taking steps toward the long-awaiting Ethereum 2.0 upgrade, which is set to be completed by 2022.

New Ethereum scaling solutions, such as Arbitrum, are being increasingly implemented by exchanges and other crypto platforms to make the leading smart contract platform more usable again by reducing transaction fees.

Additionally, the booming NFT market, which resides predominantly on the Ethereum network, is seeing increasingly high sales, while the DeFi landscape on Ethereum continues to grow despite the blockchain’s scaling challenges.

Play-to-earn gaming on Ethereum is also booming, with the likes of Axie Infinity, Sandbox, and Sorare attracting tens of thousands of players and millions in crypto. While other chains now boast a wide range of games, the triple-A blockchain games still reside on the leading smart contract chain, suggesting that most upcoming P2E games will follow suit.

While meme coins and newer layer-one blockchains are seemingly stealing the show in 2021, both bitcoin and ether remain among the best performing cryptocurrencies this year.

In light of the positive momentum for both digital assets, we could see new all-time highs before year-end, perhaps if Santa will bless us with a Christmas rally.

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Author bio:

Alex Lielacher is a former bond trader who has worked with a range of Bitcoin startups in the last 5+ years to bring the world closer to hyperbitcoinization.