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This week, Bitcoin (BTC) reached a new historic milestone, surpassing $124,500 before falling back below $120,000 on Friday. This rapid surge is a reminder that volatility remains the rule in the cryptocurrency market.
While Bitcoin grabs the headlines, it is Ethereum (ETH) that is now drawing the most attention. The second-largest cryptocurrency by market value flirted this week with its all-time high of $4,800, reached at the end of 2021. ETH gained around 10% this week, with an impressive 190% surge since early April.
This rally is largely fueled by Peter Thiel’s notable entry into ETHZilla, the commercial entity of the listed company 180 Life Sciences, which holds over 82,000 ETH. The plan is to deploy these assets in DeFi to generate income. This announcement reinforces the idea of an “American-style crypto treasury”, similar to the Bitcoin strategy adopted by MicroStrategy, and highlights how institutions are now exploring Ethereum to diversify and monetize their digital assets.
The cryptocurrency market combines spectacular opportunities with high risks:
Institutional adoption: Major corporations and wealthy investors are entering Ethereum and Bitcoin, strengthening the credibility of digital assets.
Innovation and decentralized finance (DeFi): The ability to generate passive income on Ethereum is attracting more investors, creating a snowball effect on prices.
Extreme volatility: Rapid price swings remain the norm, and even historical highs can reverse in a matter of days.
Emerging regulation: The crypto market remains sensitive to global regulatory announcements, which can influence prices in the short term.
High growth potential: BTC and ETH continue to set records due to institutional adoption and DeFi applications.
Alternative diversification: Cryptocurrencies provide exposure uncorrelated to traditional markets.
Innovative treasury strategies: Following the example of companies like MicroStrategy or ETHZilla allows crypto assets to become additional revenue sources.
👉 Investment Recommendation: Cryptocurrencies, particularly Bitcoin and Ethereum, represent a high-risk growth opportunity. For savvy and patient investors, exposure through partially hedged positions or DeFi strategies can provide leverage on the future valuation of the crypto market while remaining mindful of extreme volatility.
BTC and ETH demonstrate that the crypto market remains both fascinating and dangerous: record volatility, potential for spectacular gains, and growing institutional adoption. Investors who understand DeFi mechanisms and follow the innovative strategies of major institutions are best positioned to capitalize on this digital revolution.
Knowledge is power.
