Beautiful Virgin Islands

Wednesday, Jun 04, 2025

Why are Ethereum and Bitcoin prices reaching new record highs?

Why are Ethereum and Bitcoin prices reaching new record highs?

Bitcoin and Ethereum hit its all-time records on Tuesday as cryptos rebound. We take a look at what is driving the hype.

The price of Bitcoin hit a new all time high on Tuesday to reach $68,025 (€58,000) and the second-biggest digital coin, Ether by Ethereum surged by over 1 per cent from the previous day to $4814.80 (€4,153).

Bitcoin rose over 3 per cent in the last 24 hours, according to CoinMarketCap and beat its last record price in October of $67,016.50.

The reasons for the price hikes are not fully understood but it comes after interest in Bitcoin has been rising since the launch of the first exchange-traded fund (ETF) linked to its futures price on the New York Stock Exchange, which began trading last month.

Investors are hoping that new funds will be able to enter the cryptocurrency market using this new regulated financial product.

And just last week, Australia's regulator approved spot exchange-traded funds (ETFs) in Bitcoin and Ethereum as acceptance for cryptocurrencies grow.

Confidence in Bitcoin is rising with JP Morgan renewing its forcast for the crypto to hit $146,000 ( €125,000) in the long term.

Why is Ether rising?


Another reason for the surge in prices is partly due to new trend in cryptos called DeFi.

DeFi, or decentralised finance, is a blockchain-based type of finance that does not rely on central financial intermediaries used in banking or regulation. Ethereum is one of its main users.

Another reason for the Ethereum high is because of non-fungible tokens, or NFTs, which act as digital receipts for items such as digital art.

NFTs are compatible with anything built using Ethereum and have seen a boom in activity with one token selling for a record $69 million (€59 million) in March at Christie's.

As cryptos are being criticised for their massive consumption of energy, Ethereum is trying to become more environmentally friendly and faster. Last month, Ethereum launched an upgrade called Altair.

It also plans to change fully to a Proof of Stake (PoS) model next year, which is more environmentally friendly than the Proof of Work (PoW) mechanism.

Under PoS, transactions can only be validated based on the number of coins they have, whereas PoW transactions are validated by miners solving complex puzzles, which has a heavier environmental impact.

Ethereum currently uses both but will merge with the PoS blockchain Beacon Chain, shifting it from a PoW model to a PoS model entirely in 2022.

The Altair upgrade is being seen as a test to ensure the Beacon Chain works.

Ethereum rival is also on the up


Meanwhile, Ethereum's rival Solana has also seen a surge in recent days and has risen by over 20 per cent in the last week to $247.08 (€213).

It has also surpassed Cardano and Tether to become the fourth biggest cryptocurrency by market capitalisation.

Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
Global News Roundup: From Ukraine's strategic military strikes and Russia's demands and Tensions Escalate in Ukraine, to serious legal issues faced by Britons in Bali and Trump's media criticism, the latest developments highlight a turbulent landscape
Majority of French Voters View Macron's Presidency as a Failure
Hungary Partners with China to Boost Electric Vehicle Production
‘Vibe Coding’ Emerges as the New DIY Trend
AI Pioneer Yoshua Bengio Warns Models Can Deceive Users
Big Four Firms Rush to Create AI Auditing Systems
Musk’s xAI Pursues $113 Billion Valuation in New Share Sale
Walmart Increases Revenue Despite Shrinking Workforce
Hims & Hers Plans UK and EU Launch of Replica Obesity Drugs
Toyota to Acquire Supplier in $33 Billion Buyout
U.S. Reduces Military Presence in Syria
Trump Demands Iran End All Uranium Enrichment in Nuclear Talks
China Accuses US of Violating Trade Truce
Panama Port Owner Balances US-China Pressures
France Implements Nationwide Outdoor Smoking Ban to Protect Children
German Chancellor Merz Keeps Putin Guessing on Missile Strategy
Mandelson Criticizes UK's 'Fetish' for Abandoning EU Regulations
British Fishing Boat Owner Fined €30,000 by French Authorities
Dutch government falls as far-right leader Wilders quits coalition
Harvard Urges US to Unfreeze Funds for Public Health Research
Businessman Mauled by Lion at Luxury Namibian Lodge
Researchers Consider New Destinations Beyond the U.S.
53-Year-Old Doctor Claims Biological Age of 23
Trump Struggles to Secure Trade Deals With China and Europe
Russia to Return 6,000 Corpses Under Ukraine Prisoner Swap Deal
Microsoft Lays Off Hundreds More Amid Restructuring
Harvey Weinstein’s Publicist Embraces Notoriety
Macron and Meloni Seek Unity Despite Tensions
Trump Administration Accused of Obstructing Deportation Cases
Newark Mayor Sues Over Arrest at Immigration Facility
Center-Left Candidate Projected to Win South Korean Presidency
Trump’s Tariffs Predicted to Stall Global Economic Growth
South Korea’s President-Elect Expected to Take Softer Line on Trump and North Korea
Trump’s China Strategy Remains a Geopolitical Puzzle
Ukraine Executes Long-Range Drone Strikes on Russian Airbases
Conservative Karol Nawrocki wins Poland’s presidential election
Study Identifies Potential Radicalization Risk Among Over One Million Muslims in Germany
Good news: Annalena Baerbock Elected President of the UN General Assembly
Apple Appeals EU Law Over User Data Sharing Requirements
South Africa: "First Black Bank" Collapses after Being Looted by Owners
Poland will now withdraw from the EU migration pact after pro-Trump nationalist wins Election
"That's Disgusting, Don’t Say It Again": The Trump Joke That Made the President Boil
Trump Cancels NASA Nominee Over Democratic Donations
Paris Saint-Germain's Greatest Triumph Is Football’s Lowest Point
OnlyFans for Sale: From Lockdown Lifeline to Eight-Billion-Dollar Empire
Mayor’s Security Officer Implicated | Shocking New Details Emerge in NYC Kidnapping Case
Hegseth Warns of Potential Chinese Military Action Against Taiwan
OPEC+ Agrees to Increase Oil Output for Third Consecutive Month
Jamie Dimon Warns U.S. Bond Market Faces Pressure from Rising Debt
Turkey Detains Istanbul Officials Amid Anti-Corruption Crackdown
×