Bitcoin Price Climbs 93% Outshining Legacy Sector In Market Upturn
November 07 2023 - 6:00PM
NEWSBTC
While still recording some profits, the Bitcoin price shows signs
of exhaustion, at least on low timeframes. When zooming out, recent
data shows the massive rally experienced by cryptocurrencies over
the past few months and the sector’s potential for additional
gains. Related Reading: Why Ark Invest’s Cathie Wood Picks Bitcoin
Over Cash And Gold As of this writing, the Bitcoin price trades at
$34,800 with sideways price action in the last 24 hours. Over the
previous week, BTC recorded a 2% profit, while the altcoins market
trends much higher, retaining more gains. Bitcoin’s 110%
Year-To-Date Leap Signals A New Era BTC? According to a report from
Bitfinex, This year has marked a significant milestone for
cryptocurrencies as Bitcoin (BTC) and Ether (ETH) have shown
remarkable growth, leaving traditional assets like gold behind.
Bitcoin has soared by 93% and Ethereum by 3%, indicating a solid
performance correlation that has remained consistently tight. BTC,
in particular, has enjoyed the spotlight with its first-mover
advantage, earning the moniker of ‘digital gold’ and garnering
broad institutional support. While these digital assets reach new
heights, traditional stock indices such as the S&P 500 and
NASDAQ are navigating through a correction phase. This contrast
hints at a shifting investment landscape, with cryptocurrencies
emerging as a dominant force capable of outperforming established
markets, the report suggested. As seen in the chart below, data
hints at the Bitcoin price outperforming other assets and Gold
“playing catch up” with a 0.8 correlation with the cryptocurrency.
Bitcoin’s price rally of over 110 percent since the start of the
year signals a “transition” for holders from unrealized losses to
profits. Typically, such surges lead to market consolidation or
sharp pullbacks. Yet, the current trend of declining Coin Days
Destroyed, a metric used to gauge market activity and sentiment,
suggests that long-term investors remain steadfast, the chart below
shows. The lack of movement in wallets containing significant
Bitcoin sums further points to a bullish outlook or a defensive
strategy against economic uncertainties. Amidst this crypto
resilience, the Federal Reserve’s latest decision to maintain
interest rates between 5.25 and 5.50 percent reflects a cautious
but non-restrictive economic approach, the report claims. Crypto
Stands Firm In Economic Uncertainty Despite the Fed’s updated,
confident view of the U.S. economy, the manufacturing sector
experienced a downturn in October, mainly due to strikes in the
automotive industry. This suggests a significant impact of labor
disputes on the sector. The broader U.S. economy is feeling the
effects, with a slowdown in job creation and the slowest wage
growth since mid-2021, indicating a shift in labor market
conditions. This data supports a continuation of the current
bullish trend. Related Reading: Ethereum Bullish Revival: Will This
Breakthrough Lead To A New Market Phase? However, as mentioned,
traders should be looking for spikes in volatility, which could
create obstacles, especially for those speculators taking leverage
positions. Cover image from Unsplash, chart from Tradingview
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