A banana duct-taped to a wall, considered a provocative piece of art, was sold at auction on Wednesday November 20, for an astonishing $6.2 million.
The buyer, cryptocurrency entrepreneur Justin Sun, acquired the artwork through Sotheby’s, reigniting the global debate on the definition and value of art.
“Comedian,” by Italian artist Maurizio Cattelan, first rocked the art world upon its debut at Miami’s Art Basel in 2019, drawing such large crowds that the exhibit had to be taken down for public safety and to protect other works on display.
At Sotheby’s in New York on Wednesday, it went from a starting price of $800,000 to $5.2 million when the hammer fell about five minutes later, plus a buyer’s premium, or fee.
Sun, the Chinese collector and founder of the cryptocurrency Tron, placed the winning bid over the phone. He paid in crypto and it will be the buyer’s responsibility to replace the banana as it rots, according to Artnet.com.
“This is not just an artwork,” Sun said in a statement to Sotheby’s. “It represents a cultural phenomenon that bridges the worlds of art, memes, and the cryptocurrency community. I believe this piece will inspire more thought and discussion in the future and will become a part of history.”
Sun stated that he intended to eat the banana, a move reminiscent of at least two spectators who had done the same during the piece’s exhibitions in various galleries worldwide.
Bidding soared past the pre-sale high estimate of $1.5 million, Sotheby’s said, with bidders in the room, on the phone and online.
The artist, Maurizio Cattelan, is renowned for his provocative creations, including a golden toilet and a sculpture depicting the pope struck by a meteorite.
Elsewhere, Bitcoin’s price rose to new heights in the past week, with BTC going for $99800 at the time of Publication, just two weeks after Donald Trump’s victory.
Some crypto analysts have even predicted that BTC’s price could soon reach $100,000 or $150,000 per coin. However, some are still skeptical of the current Bitcoin rally’s sustainability.
The Bitcoin rally has nevertheless boosted the ETF market. As of November 21, US spot ETFs had also crossed the $100 billion mark in assets held, analysts attributing the milestone to Trump’s win believing it started the BTC price spike.
US spot Bitcoin exchange-traded funds (ETFs) received over $2.4 billion in inflows last week. In contrast, China-based ETFs experienced significant outflows, with over $2 billion withdrawn during the same week.
Stock indexes like the S&P 500 and the Dow, have been climbing steadily and showing off their quiet strength. On the other, Bitcoin is on a rampage, throwing caution to the wind and pushing closer to $100,000.
The S&P 500 has been all business lately. After the post-election buzz took it to a 25% gain for the year, the index cooled off just enough to test its October highs. Last week, it bounced back with a 1.7% rise.
Bitcoin is a party starter, and its mania has spilled over into crypto-linked stocks, penny stocks, leveraged ETFs, and even speculative tech plays that were left for dead after the 2021 bust.
Take MicroStrategy for example. The company has turned itself into a Bitcoin holding tank, using billions of dollars raised through stock sales and debt to buy more Bitcoin. It’s a self-reinforcing cycle: more Bitcoin means more enthusiasm and more enthusiasm means retail traders piling in.
Last week, retail buying tripled just as MicroStrategy’s stock hit a $100 billion market cap — three times the value of its Bitcoin stash.
If MicroStrategy’s wild ride isn’t enough, there are leveraged ETFs that take things to the next level. MSTU, an ETF tied solely to MicroStrategy shares, has seen its trading volume double this month. But things are getting dicey.
Most stocks have been pulling their weight, and financials and cyclical sectors are leading the charge. The optimism is tied to what’s coming next: a Trump administration that’s expected to pump out policies aimed at expanding the economy and boosting earnings growth.
Cross the market, leveraged-long ETFs are seeing near-record inflows compared to short ETFs. According to SentimenTrader, the last time this happened was in late 2021—right before a major market peak.
Net inflows to stock ETFs are also hitting multi-year highs, though they’re not as extreme relative to market value as they were back then. Still, it’s clear that money is pouring into high-risk plays, and the appetite for speculation is alive and well.