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Is Bitcoin’s True Power Being Revealed as COVID-19 Market Crisis Sends Oil Futures Price Below Zero?

As WTI crude oil futures plummeted into negative territory, Bitcoin hardly seemed to notice, recording only a minor correction and dipping under 7k.

Is Bitcoin starting to reveal its true potential as a safe haven asset? While the pioneer crypto lost relatively little value could it be too early to tell and is the Bitcoin price soon to be in danger? It may also be possible that fewer BTC holders are willing to part with the potential safe haven value store given the current COVID economic downturn. If the shock crude oil crash does not demonstrate a potential weakness in the structure of our global economy and a need for an asset with the promise of Bitcoin, then frankly nothing will.

The sell-off appeared to be mainly attributed to the impending expiration of the the May 2020 Futures contract for West Texas Intermediate (WTI). The expiration of these May contracts force the handover of physical barrels of oil at a time when storage capacity is critically low. According to data from Bloomberg, on April 20, futures for a barrel of WTI crude oil expiring in May lost 36% on Monday.

Source : WTI May futures – Trading View

The sell off continued and at its worst the crude oil price stopped just shy of negative $40 dollars with the contracts finally settling on -$37.63%, a whopping -305% decline which is unheard of in the history of WTI crude oil futures.

The shock crash is indicative of just how much oil demand has collapsed due to the COVID-19 pandemic lockdown which has not been further helped by the ongoing oil price war between Russia, Saudi Arabia and Mexico. As there seems to be no end immediately in sight to the pandemic, the financial community is growing concerned that we may see a repeat of this price action with June crude oil futures.

Oil Plummets, Bitcoin Hiccups

As the crude oil futures plummetted, Bitcoin appeared to be almost at business as usual. Bitcoin which had been experiencing a bullish recovery from its initial fall and was sitting at around $7,200 prior to the crash, in the immediate 24 hours after, the price dropped nearly 5% and currently sits at around $6900 – which is a very small movement in the world of Bitcoin.

Source – CoinMarketCap

Are Bitcoiner’s Safe in their Harbour?

Bitcoin was built in reaction to a broken global economic system. It was designed as an alternative to traditional state-controlled financial currencies and markets. That’s why many have thought for the last 10 years that the Bitcoin price would shoot up if the stock market were to crash.

However, almost as soon as the US stock markets started to crash in February, the price of Bitcoin showed very strong market correlation and also declined. The Bitcoin price halved from around $10,000 to $5,000 in a matter of weeks, shedding thousands of dollars in just a few days. This proves that the first move of many investors wasn’t to rush to trade their stocks for Bitcoin. It was to trade their Bitcoin for US dollars and stablecoins.

Oil’s price action is a testament to the instability of the legacy market infrastructure prevalent in the global economy unable to balance the fundamentals of supply and demand. Bitcoin, however, which continues to dance in and around these traditional markets, held in price against the shocking decline of demand for black gold which has breathed new life into its potential safe-haven status.

While BTC’s movement remains on track to make its post halving bull run seemingly undeterred by the oil crash, the truth is it is just far too early to make a call on its ability to act as value store that will survive through the pandemic crisis.

Another potential issue that hardcore Bitcoiner’s do not appear to be recognizing is that bringing new blood to the market will not be as easy as continually pointing out the failures of our system. Essentially, Bitcoin will only be recognised as a safe haven when its market action reflects this through holdings by investors, but why would these investors suddenly turn to a nascent technology that they hardly understand in the middle of COVID chaos, while in reality, traditional safe-haven Gold is now performing as expected?It may be too early to tell if Bitcoin has gotten away clean from this latest incident in the rising global financial crisis brought on by the COVID-19 pandemic, and it’s still far too early to speculate if it will prevail as a safe haven.

Jul 24 Trading Analysis: What Bloodbath?

Trading Crypto with Eugene is a series of daily commentary of market analysis and trading advice shared by Eugene Ng of Matrixport, a veteran trader with 10 years of experience in top-tier global investment banks. If you like the article, please follow us here on Blockchain.News so you won’t miss our future publications.

Quick Friday note before the weekend. US stocks smacked lower with UST 10yr closing 58 bps and crude slumping. 10-year real yields is actually -88 bps today?! Nasdaq got hammered down more than 2.5% last night as US Jobless Claims disappointed, increased U.S.-China tension and Tesla giving up all of its +6% opening gain to only close down on the day 5%. Maybe Robhinhood users caught hold of my tweet last night about pressing the “red button”.

Despite stonk’s bloodbath, BTC managed to close higher on the day with some short squeeze liquidation through $9600 level. I am actually surprised that we are still trading at current levels, would only be a matter of time that we see us retracing back some of its gains, which was why I said yesterday, we need to continue to monitor the momentum of capital into BTC… If there isn’t MoMo, we are likely going back to our low-volatility summer, so you know what to do now. Goodluck and enjoy your weekend.
Chart of the day: When a picture paints a thousand words…

DisclaimerOpinions expressed are solely the analyst’s own and do not express the views of Matrixport the company.The views and opinions expressed in this article are those of the contributor and do not necessarily reflectthe view of Blockchain.News.

Veteran Analyst Peter Brandt Exited Stocks and Bitcoin Portfolio, Returned To US Dollar

Commodity trading veteran Peter Brandt recently cashed out all his Bitcoin, forex, and stock holdings that constituted his portfolio and moved his assets back into home US currency. The trading legend sold his portfolio in Bitcoin, the foreign exchange market, and stocks and moved the assets into US dollars right before the all-round market and Bitcoin crash two days ago.

Peter Brandt is a legend trending expert known in crypto circles for accurately forecasting the historic collapse of the Bitcoin price in 2018. He is the CEO and founder of the Global trading firm Factor LLC, which trades forex, proprietary capital, fixed income, and equity markets.

Peter is regarded as one of the world’s greatest authorities on the use of classical charting principles to trade futures and forex markets.

Market Crash

What is Peter Brandt’s reasoning? He thinks that the U.S market bubble is in its final stage before it pops. This is what he believes about the US market: “Fight the Fed at your own doom. Getting bearish too early can wipe you out. Market in final blow-off to 12-year bull market. Bubbles can expand further than anyone expects possible, then burst tragically. Great profits in final push.”

After five bearish months, the US dollar index rebounded slightly (+0.5%) this week. Bitcoin and gold responded negatively to that development, with Bitcoin trading at $10,455 at the time of writing the article, a decline of more than 12% on the day, owing to heavy losses suffered in the present crypto markets.

The US stock market also posted its largest sell-offs since June, after leading stocks like Google, Tesla, Apple retreated from all-time highs.

The strengthening US dollar and increasing exchange inflows contributed to the painful Bitcoin plunge.

Serious Bitcoin Warning

Peter Brandt sold all his Bitcoins as he has been extremely skeptical when it comes to the cryptocurrency’s future. In March this year, Bitcoin fell to $3,000 before bouncing back to $5,000. Peter warned traders that Bitcoin price may decline further in the future as below as $1,000.

He reasoned that cryptocurrencies and Bitcoin would not get their big break thanks to the problems with the fiat economy. He forecasted that in the future, the world would adopt the so-called SDRs (special drawing rights) global reserve unit based on multiple fiat currencies (GBP, USD, EUR, AUD, JPY, CAD, CNH, JPY, crude oil, silver, and gold. Bitcoin or other cryptocurrencies will not be part of the basket.

Why Bitcoin Should Make Up 5% of Your Investment Portfolio, According to Fidelity

Bitcoin has behaved unlike any other investment asset on the market and its stellar performance so far is only indicative of something greater. According to Fidelity cryptocurrency experts, Bitcoin (BTC) has not unleashed its full potential yet, and investors should capitalize on its current growth and consider diversifying their investment portfolio with BTC.

Bitcoin’s budding potential among all cryptos

Research from Fidelity’s Digital Assets sub-division demonstrates Bitcoin’s movement on the market is unlike any other assets such as gold or stocks. The mainstream cryptocurrency has experienced great gains, with Bitcoin being the biggest digital currency by market capitalization. In reference to BTC’s potential, Director of Research for Fidelity Digital Assets, Ria Bhutoria said:

“Bitcoin has a $197 billion market cap (as of October 7,2020). Bitcoin is a drop in the bucket compared with markets bitcoin could disrupt.”

Fidelity makes the case for Bitcoin investment

Through its Bitcoin Investment Thesis report, Fidelity Digital Assets found that Bitcoin had a low correlation with other digital assets as well. As Bitcoin (BTC)’s movement was decoupled from that of other hedges, financial services giant Fidelity suggested that it was a wise choice for investors to consider allocating 5% of their investment portfolio to Bitcoin.

The report from Fidelity demonstrated that not only was Bitcoin’s behavior decoupled from that of other assets on the market, such as stocks and gold, but that the cryptocurrency appeared to be unaffected by external social and economic conditions, having experienced surges despite “economic headwinds.”

This in itself made the case for why Bitcoin was an attractive alternative investment, according to Fidelity. Director of research Ria Bhutoria stated:

“Bitcoin is fundamentally less exposed to the prolonged economic headwinds that other assets will likely face in the next months and years. Combined with its multifaceted narratives and an interesting effect of persisting retail and growing institutional sentiment, it could be a potentially useful and uncorrelated addition to an investor’s portfolio toolkit.”

In addition to this, Fidelity Digital Assets elaborated on Bitcoin’s other advantages, which included liquidity, accessibility, and low fees. As most alternative investment packages came with a commission fee pocketed by financial portfolio managers, monetary gains acquired by investors may sometimes be lower than what was earned. The report read:

“Alternative investments may be accompanied by fees that reduce the net returns investors receive, such as management and performance fees.”

The only transaction fees associated with Bitcoin was the actual cost of the crypto trade, as well as “the cost to custody the assets,” making it a great alternative for investors wishing to diversify their financial portfolio.

Fidelity supporting Bitcoin comes at a time when numerous institutional investors have diversified their companies’ treasury reserve with Bitcoin. Recently, Square payments company bought $50 million in BTC, and this made pave the way for other investors looking to onboard the crypto asset.

Winklevoss says Bitcoin price to hit $500,000

Fidelity’s sentiments also echo that of Bitcoin billionaire, Tyler Winklevoss, who has long touted Bitcoin’s horn. He asserted that Bitcoin was headed towards a mark-up of $500,000.

For Winklevoss, the “digital gold” cryptocurrency was the only protection against inflation. With the US Federal Reserve’s stimulus package plans and the reserve bank actively printing money, the US dollar has greatly depreciated, consequently leading to investors flocking towards Bitcoin as a safe-haven asset. With Bitcoin’s maximum supply capping at 21 million, Winklevoss said:

“Bitcoin is ultimately the only long-term protection against inflation.”

The mainstream cryptocurrency has recorded bullish momentum this week. Currently, as of press time, Bitcoin is trading at $11,438.85 on CoinGecko.

Is Bitcoin Currently Overvalued? JPMorgan Foresees Selling Pressure Ahead

According to JPMorgan analysts, who looked into Bitcoin’s price by referring to a futures-based index, Bitcoin’s bullish momentum on the market so far has outnumbered its bearish ones.

Forecast of modern headwind ahead for Bitcoin

However, in the short term, Bitcoin may only experience slight gains due to upcoming resistance factors, as opposed to its potential increase in value in the long run. Analyzing the digital asset as a commodity, JPMorgan Chase predicted that Bitcoin (BTC) may undergo selling pressure in the near future.

From a short-term perspective, Bitcoin will face a “modest headwind,” meaning that its financial growth will not be significant. To gain more insight into Bitcoin’s intrinsic value, JP Morgan Chase & Co experts backed their deductions by analyzing the cryptocurrency as a commodity. Their calculations measured the asset against other commodities and took into consideration the marginal cost of production.

Strategists also looked at bets placed in the Bitcoin (BTC) futures market to back their predictions.

Bitcoin futures, which operate in a similar way as stocks or commodities futures, enable investors to hold Bitcoin contracts without acquiring the actual underlying cryptocurrency – BTC. Bitcoin futures prices often differ slightly from the actual market price of BTC, or the “spot price” of the asset. Their market value above spot price indicates bullishness for Bitcoin, while below spot price positions mean bearishness.

Bitcoin to gain value in the long run

In the long run, however, investors who hold Bitcoin or futures contracts will benefit from the asset. Looking at a futures-based indicator, JPMorgan strategist Nikolaos Panigirtzoglou disclosed his predictions:

“There still appears to be an overhand of net long positions.”

This indicated that Bitcoin’s value was potentially going to increase significantly in the long term, as investors who are net long will greatly benefit from holding the digital asset in their investments over a long period of time.

Bitcoin onboards new investors despite volatility

Strategists also pinpointed that there was a growing institutional interest directed towards Bitcoin, first with MicroStrategy’s announcement of a $425 million purchase of BTC. Following the big move, payments company Square also allocated a portion of its treasury reserve to Bitcoin, acquiring $50 million dollars’ worth of the asset.

The latest institutional Bitcoin whale to have onboarded Bitcoin is Stone Ridge Asset Management, which gained $115 million in BTC.

Cryptocurrencies have experienced high volatility this year, but according to the Bloomberg Galaxy Crypto Index of digital currencies, the sector has been one of the year’s top-performing asset classes.

Bitcoin 2020 market run

Bitcoin’s price dropped in September, but according to JPMorgan Chase’s analytics team, the value “still remained about 13% higher than an estimate of intrinsic value.” Dropping by 8% last month, Bitcoin has since surged ahead of the $10,000 mark, rallying past $11,000 recently.

Currently, Bitcoin is trading at $11,385 on CoinGecko, and market traders are anticipating its bull run past the $11,500 mark.

Is Bitcoin Finally Decoupling from S&P 500? BTC Soars While Stocks Plunge

Bitcoin has been displaying bullish behavior lately, gaining more than 2% in the past week and bringing the mainstream cryptocurrency closer to a psychological threshold of $12,000.

Bitcoin surges while traditional stocks fail to impress

Market experts have been quick to hypothesize that the gain of more than $300 experienced by Bitcoin (BTC) may indicate that it was slowly decoupling from traditional stock markets, as opposed to what industry analysts have previously concluded. Previously, US analysts have observed that Bitcoin had a tendency to trade alongside traditional markets, failing to record groundbreaking price runs when traditional stocks were bearish.

However, Bitcoin’s decoupling may be at our doorsteps sooner than expected, as it recorded bullish momentum after Sunday night’s weekly close, and appears to still be surging, according to data from CoinGecko. The stock market, on its end, is struggling to recover as it nosedived amid the US stimulus package negotiations.

Economic uncertainty sends US stocks downhill

According to Morgan Stanley’s chief investment strategist Mike Wilson, the S&P 500 stock market index is very likely to drop by 10% in the near term. He stipulated that the stock market was likely to plummet before regaining bullish momentum.

Wilson attributed the headwinds faced by the stock market to factors such as the uncertainty revolving around the US elections, the lack of a stimulus package agreement, and the never-ending wave of coronavirus infections. He said:

“With so many uncertainties over the next month, we think another 10% correction from Monday’s highs is the most likely outcome in the near term before this bull market can resume.”

With the coronavirus stimulus package talks being inconclusive, stocks have taken a massive hit. The outcome will also likely impact the stock market, as the final stimulus package will most likely result in high inflation rates and the continued depreciation of the US dollar. Currently, though stimulus talks have been inconclusive, the final COVID-19 economic package will likely be in the trillions.

Stocks or not, Bitcoin is headed for the skies

With economic uncertainty and stock turbulence, this has onboarded more retail investors to seek Bitcoin as a hedge. Even institutional giants such as Square and MicroStrategy have taken to BTC to secure their treasury reserves, pouring millions into the cryptocurrency.

Since Bitcoin has been bullish for the past few weeks, industry experts have hypothesized with great excitement that the crypto asset may finally be decoupling from traditional stock markets.

Currently, Bitcoin’s price is trading at $11,763.09 on CoinGecko, making the price jump past the $11,500 mark. For the moment, it has fallen back slightly after pushing past $11,800.

In reference to Bitcoin’s rally, Ivan on Tech, who boasts of running the biggest blockchain academy to educate investors on “smart money,” took to his Twitter and said:

“BITCOIN DECOUPLING FROM STOCKS!!! Historic parabolic Q4 ahead; $20,000 already 2020 realistic.”

The blockchain enthusiast’s optimistic sentiment echoes that of crypto analyst Willy Woo, who previously predicted that if a massive stock market crash occurred, this may consequently lead to Bitcoin and the traditional stock market breaking their correlation.

What Pfizer's COVID-19 Vaccine Means for the Bitcoin Price Outlook

Bitcoin has remained in its consolidation phase after its continuous weeks of climbing to new highs. Bitcoin has been trading steadily above $15,000, and has been trading sideways in the past 24 hours, and is currently priced at $15,381 at press time.

While the economy has been suffering since the COVID-19 pandemic broke out, Bitcoin has more than benefitted from the depression, climbing to a new all-time high in 2020. The uncertainty of the post-pandemic recovery has boosted Bitcoin’s price, as many have looked to invest in safe-haven assets like Bitcoin.

Recently, news broke out of a coronavirus vaccine from Pfizer and BioNTech being 90 percent effective, Bitcoin’s price plunged. The vaccine has proven to be effective in preventing COVID-19 among those without prior infection, after at least 1.2 million lives have been claimed by the coronavirus.

The COVID-19 vaccine news has set a record-breaking time frame for an introduction of a vaccine, as it usually takes around 10 years to produce a safe and effective vaccine.

The stock market reacted very quickly to the vaccine news, as US stock futures jumped as soon as investors heard the news. The Dow Jones Industrial futures surged 1,646 points, while other industries’ stocks affected by the pandemic have also pumped in light of hope of future ease of travel restrictions.

COVID-19 vaccine will not be an “instant stimulus”

Bitcoin saw a negative correlation with the traditional stock market, as it saw a slight plunge towards the mid $14,500 level, as hopes of the old normal economy were to be revived again. While Bitcoin’s sell-off was at the exact time when the stocks were soaring, the BTC plunge could be due to large crypto investors taking their profit out of the safe-haven asset, and back into the stock market.

Although hopes remain high on the effects of the COVID-19 vaccine on the global economic recovery, an economist warns that this will not result in an “instant stimulus.”

According to Carl Tannenbaum, the chief economist at Northern Trust, the vaccine news and jobs growth in October in the US may seem to have been encouraging, but more economic stimulus is still needed. Tannenbaum explained:

“On the employment front, we still have 10 million Americans that were working in January that are not working today. And those that remain unemployed are seeing a much longer track back to full employment, so they will continue to need a certain amount of support.”

The United States would not be likely to see a new economic relief package before the presidential inauguration in January, said the economist. Recovery still seems to be a steep slope to climb, which could still be bullish for Bitcoin’s outlook.

Kraken CEO: Drive behind Bitcoin and Tech Stock Adoption in 2020 Linked to Risk of Holding USD

Much like other leaders in the crypto industry, Kraken CEO and co-founder Jesse Powell believes that Bitcoin is a major game-changer and will continue to be one.

Bitcoin as digital gold

Bitcoin’s narrative has changed over the years. With the increased institutional adoption that has backed Bitcoin this year, BTC has slowly made its way into mainstream investments. One of the most revolutionary moves of 2020 may be corporations like MicroStrategy, Square, and Grayscale that have chosen to invest in Bitcoin, as traditionally, it has been associated with high risk due to its volatility.

Perspectives on Bitcoin have greatly shifted in 2020. In an interview with Bloomberg, Kraken CEO Jesse Powell explained why. He said that with the rise in inflation and the depreciation of the US dollar this year, triggered by stimulus printing, many investors have flocked to other stores of value to secure their assets. This has been what has ignited Bitcoin and tech stocks’ bullish momentum on the market. Powell explained:

“Holding the dollar seems like a risky process compared to something like Bitcoin, which is finite, predictable, and an even better store of value than gold.”

Powell associated this with the fact that investors no longer trusted national currencies and the dollar as a store of value, rather than the fact that the stock market and Bitcoin were correlated – on the contrary. Powell attributed the growth of Bitcoin and tech stocks this year to investors seeing them as better stores of value than the dollar.

Why tech stocks and Bitcoin have gone up this year

Both Bitcoin and tech have been widely popular among investors in 2020 for wealth protection, as the Federal Reserve’s plans to mass print money for stimulus relief has resulted in the dollar shooting down in value. Powell said:

“Historically Bitcoin has been uncorrelated to the rest of the stock market. I think what we are seeing now is just that both financial assets are on fire and reacting to the money printing that is happening.”

The Federal Reserve’s decision to continue mass printing money to alleviate the economic wreck caused by COVID-19 has benefitted the cryptocurrency industry as a whole. Currently, a consensus seems to have been established in the White House that the budget for the stimulus relief package will be $900 billion, with $600 direct payments to each eligible citizen. As long as the United States continues to roll out stimulus packages for coronavirus relief, investors will continue to gravitate towards Bitcoin and stocks as a safeguard against inflation.

Powell also disclosed that although Bitcoin has received incredible support this year and will continue to do so, the safe-haven asset will likely continue to undergo volatility until there is an even bigger increase of institutional adoption in the years to come. Only then will Bitcoin’s volatility go down. For now, the world is just warming up to cryptocurrencies and beginning to see the potential behind its technology.

Is the Crypto Market about to Burst? Mark Cuban Compares Crypto Downtrend to Internet Stock Bubble

After undergoing an incredible surge, with the market capitalization of the crypto market crossing the $1 trillion mark, many cryptocurrencies have considerably dropped in value. This has served to flush out more than $200 billion in market value as Bitcoin (BTC), the largest cryptocurrency by market cap, dropped. It is now trading at around $35,819.00 at the time of writing, down approximately 6% in the last 24 hours after hitting a record high of $40K at the end of last week.

Along with BTC trading lower, most cryptocurrencies have followed suit. Ethereum, the second-largest cryptocurrency by market cap, is also down 10% in the last 24 hours, although it has still managed to stay above the $1000 critical support level.

BTC and ETH will beat the crypto bubble

Shark Tank entrepreneur and NBA Dallas Mavericks owner Mark Cuban commented on the cryptocurrency market’s downtrend and hinted that the current situation was indicative of a stock bubble, in which asset prices massively crash after riding on highs for a sustained period of time. Cuban said:

“Watching the cryptos trade, it’s EXACTLY like the internet stock bubble. EXACTLY. I think btc, eth, a few others will be analogous to those that were built during the dot-com era, survived the bubble bursting and thrived, like AMZN, Ebay, and Priceline. Many won’t.”

Cuban hints that Bitcoin (BTC) and Ethereum (ETH) will likely thrive despite the current bubble territory that seems to have hit the cryptocurrency sector, just like some tech stocks who beat the dot-com bubble in the late 1990s, namely Amazon, Ebay, and Priceline. During that period of time, many tech-related stocks rose considerably in value due to excessive speculation, but the stocks quickly went bust by the end of 2001, resulting in a market crash and steep losses for investors.

Being the largest cryptocurrency by market cap, Bitcoin has been largely backed by institutional support and will likely continue to rise in value in the long run. The same is likely to happen for Ethereum as well in 2021, as there have been talks that ETH futures will be rolled out in 2021 by CME Futures, given that the demand for Ethereum is growing.

Crypto and other investments driven by perfect sales pitch

Cuban said that the reason behind cryptocurrency price surges was the same as that behind gold – according to him, it was simply a question of supply and demand. The likes can be influenced by a perfect sales pitch that tugged on investors’ FOMO (fear of missing out) strings – that the asset was scarce, and one must therefore have it before it was too late. For Cuban, it is as simple as that. The Shark Tank personality said:

“As during the dot-come bubble ‘the experts’ try to justify whatever the pricing of the day is. Crypto, much like gold, is a supply and demand driven. All the narratives about debasement, fiat, etc are just sales pitches. The biggest sales pitch is scarcity vs demand. That’s it.”

Cuban is not the only bull who thinks that Bitcoin is caught in bubble territory. Jeffrey Gundlach, the CEO of the DoubleLine Capital LP, also shared his views and said that Bitcoin looked like it was about to plummet at any moment.

Cuban said that the best way to go about investments was to “learn how to hedge.”

Peter Schiff remains skeptical about crypto

Gold bull Peter Schiff, on the other hand, has long been critical of the real value of cryptocurrencies, having previously proclaimed that Bitcoin was not unlike a pyramid scheme, and artificially inflated. The investor much preferred conventional stocks like gold and silver to hedge, rather than digital assets. He now hit Cuban back with a comment, saying:

“The difference is that some of those early internet stocks actually had real value. So they survived and ultimately thrived. None of the cryptos have any real value so there will be no winners. They will all lose.”

Bitcoin Inches Closer to a Market Value of $1 Trillion

Bitcoin (BTC) is continuously making notable strides because its current bull run has made its market value a stone’s throw away from the $1 trillion mark.

The leading cryptocurrency is currently trading at $51,799.94, with a market capitalization of $964 billion, according to CoinMarketCap.

Bitcoin outperforming traditional assets

Bitcoin’s uptrend is indicative of the cryptocurrency outperforming more traditional assets like stocks and gold, as its continuous battle with the latter for the status of safe-haven asset seems never-ending.

Market analyst Holger Zschaepitz recently disclosed that gold dropped to a price lower than $1,800 whereas BTC broke the record by surpassing the $51,000 mark. He explained:

“Looks as if Bitcoin is eating Gold. While the cryptocurrency hit fresh ATH >51k, Gold has dropped <$1800.”

Bitcoin’s value has gone through the roof because it has surged by at least $415 billion in 2021 alone thanks to institutional investors, corporate treasurers, and speculators.

BTC’s momentous growth is continuously cementing its status as an inflationary hedge as it eyes the $60,000 mark. Crypto analyst Joseph Young believes that its price and value will be sustained in the long run.

Fear of missing out comes to play

Shane Oliver, the head of investment strategy at AMP Capital Investors, believes that the fear of missing out (FOMO) may be a factor contributing to Bitcoin’s uptrend. Corporate giants like Microstrategy have emerged to be big BTC spenders, as evidenced by its balance sheet of over $1.3 billion in Bitcoin.

Institutional investors have served to fuel FOMO, paving the way with their overwhelming appetite for the leading cryptocurrency. As Bitcoin’s dominance continues, the top crypto has been undergone the third parabolic advance in its history with a target of $240,000.

It seems as though BTC is on a journey to the moon because the consolidation it has been witnessing since January has made $48,000 the new support level.