Bitcoin is on its way to break 2019's high price, as it went above $13,800.
Interestingly, the uptrend of almost 30% in October has been while the search for the terms “Bitcoin” and “Buy Bitcoin” remains the same; with no noticeable uptick yet.
However, the same elation is not seen in the altcoin market as Ether is trading back under $400, and red permeates the cryptocurrency market.
The majority of the altcoins are recording losses; as such, the cryptocurrency market cap, excluding Bitcoin, only added $3 billion, while Bitcoin’s market cap increased by $57 billion in this entire month.
“Altcoin capitulation” is what we are seeing according to analyst Don Alt. “If this move down on all altcoins keeps going for a couple weeks and starts getting ridiculous, I think we might be able to finally find some sort of medium-term bottom,” he added.
Amidst the green cryptos, Curve (CRV) is the one enjoying the most gains, up nearly 50% in the past week. This could be because CRV was the biggest loser during the DeFi correction in September, resulting in this token losing 99% of its value since its all-time highs.
Naturally, Bitcoin's dominance surged above 63% from 57% in September., which has been on a downtrend ever since August 2019.
The Decoupling Happening Too
Not only is Alts dumping and Bitcoin pumping, but stock markets aren’t doing any better as they weather the tension around the upcoming US Presidential elections.
Stocks markets around the world are getting smoked today.
Seems the tide may be turning once again.
— The Wolf Of All Streets (@scottmelker) October 28, 2020
This helped Bitcoin decoupling form the equity market. Although there needs to be more time and data needed to validate this “decoupling,” the way things are happening “suggest we’re at a “critical mass” moment when widespread awareness and adoption is about to happen,” stated Weiss Crypto Ratings.
This decoupling might be happening only now, after a shorter-term correlation, but according to analyst Willy Woo Bitcoin being a “risk-on” asset is a “fallacy” and has already been considered a safe haven by investors.
To support his arguments he shared that during the COVID-19 correction, coins scooped off the exchanges and got locked into long-term HODL wallets at the largest pace than in Bitcoin’s history which still continues.
“While traders were selling Bitcoins, investors were accumulating. It's investors that determine the long term price,” he added.
“Price will follow”
Currently, bitcoin's price is enjoying a rally while all the other markets aren’t doing much. Gold has been stuck around $1,900 for over two months while the US Dollar continues to downslide.
Bitcoin is simply venturing on another cycle as it has two times before in its history. For BTC to match last cycle’s timing to regain its all-time high, BTC needs to hit $20,000 on March 11, 2021.
It “would be kind of poetic for it to happen a year after (arguably) the most infamous day in bitcoin's history,” remarked analyst Ceteris Paribus.
But while the price of the leading digital asset is still waiting to post a new all-time high, “the organic valuation under NVT Price from underlying long term investors is already at an all-time-high,” and “Price will follow.”