Gold and the S&P500 have surpassed Bitcoin in reaching record highs, but market experts are predicting that key factors are aligning to push BTC beyond its peak.
BTC is approaching a crucial resistance level at $70k as it continues to steadily rise, resulting in an 8% increase over the past 30 days. Currently, the asset is trading at $69k, with its daily trading volume experiencing a significant surge of 70%, bringing the Year-To-Date return to 56%.
In comparison, gold is outperforming BTC with its strongest performance since 2010, reaching an all-time high price of $2,718. The S&P500 has also seen a 23% year-to-date surge, surpassing $5,870 on October 17.
The reason behind BTC’s failure to breach its record high in recent months has been attributed to its rapid ascent from hitting $73,700. Analysts believe that this has been influenced by the consistent liquidations caused by the German government’s decision to liquidate 88% of the 50,000 BTC seized from movie piracy operators. Additionally, the trustee for Mt. Gox announced repayments to creditors in Bitcoin and Bitcoin Cash, resulting in a mass sell-off and impeding BTC’s growth.
Further analysis of Bitcoin’s performance reveals that its availability for trade 24/7 makes it more susceptible to volatility, leading to liquidation and significant pressure that brings down its value. Analysts support this theory with a chart showing the distribution of Bitcoin within the given period.
Despite the dip in BTC’s performance, it has provided opportunities for both large and small investors to aggressively accumulate the asset. Data from Santiment shows an increase in the number of wallets holding between 100 BTC and 1,000 BTC during a specific time period.
Analysts believe that BTC still has the potential for a record performance, especially with reports of potential rate cuts by Western central banks and the support for crypto from US presidential candidate Donald Trump. Additionally, Japan’s low inflation rate may act as a catalyst to propel Bitcoin to new highs.
In conclusion, Bitcoin’s performance has been overshadowed by gold and the S&P500, but there are factors that suggest it may overcome its current limitations and achieve a record-breaking performance.