Bitcoin hit a new all-time high Wednesday, as investors celebrated the launch of the first U.S.-based bitcoin futures exchange-traded funds.
At 10:58 AM, the world's most valuable cryptocurrency had risen by 3% to $66,690. ET has surpassed the previous record of $64,899, set in mid-April.
"The important thing here is whether or not we can establish support above $65,000. If we are able to, the classic Q4 crypto rallies that we have seen in most years could push bitcoin towards the higher price predictions of the past few months. "If sell pressure prevails, however, our next leg-up could take a while," stated Jesse Proudman CEO of crypto robo advisor Makara.
A legendary trader made bullish comments Wednesday, which boosted sentiment. Paul Tudor Jones, a billionaire investor, said crypto was his preferred inflation hedge to gold.
"Bitcoin could be a great hedge. Jones said that crypto would make a great hedge on Wednesday's CNBC's "SquawkBox." "There is a plan for crypto, and it clearly leads the race against gold right now. It would be a very good inflation hedge, I think. I would prefer it to gold right now.
Ethereum rose 6% to pass the $4,000 mark. The second-largest cryptocurrency in the world traded at $4.049, just shy of its intraday record of 4,380 in May.
ProShares' Bitcoin Strategy ETF, which tracks futures contracts for bitcoin, saw a nearly 5% increase in trading on Tuesday.
The crypto market is not for everyone. Many bitcoin investors are looking for an ETF that tracks spot price rather than futures.
Novice investors need to be familiar with terms such as "contango," in which the commodity's futures price is higher than its spot, and "backwardation," that is the exact opposite.
