Bitcoin Finally Hits a 34-Month High as BTC Briefly Pushes Past $14,000 on Its Birthday
Bitcoin continued inching closer to the big resistance of $14,000 on its way to the all-time high of $20,000 today, and finally, on its whitepaper Birthday, BTC hit it.
The leading digital currency went as high as $14,100 on Bitstamp, up 5% today with $2.6 billion in trading volume, before retracing under $14k. The last time we hit this level was in the middle of January 2018.
Today, as October comes to an end, Bitcoin has printed a monster monthly candle as we rallied 35% this month following the start of around $10,340. Now, it’s to be seen how high we actually end it.
In 2020, to date, Bitcoin has recorded 90.5% gains.
#Bitcoin was conceived (not born) 12 years ago on this day. A 9 page white paper evolved into $250 billion dollars in market cap today, with no fund raising, no marketing budget, no office, and no paid staff.
— CZ Binance (@cz_binance) October 31, 2020
Bitcoin Shines Bright
On Wednesday, this week, BTC came close to hitting 2019 high but failed and dumped to go under $13,000.
Yesterday, we started moving yet again, while the equity market dropped even lower. Since Oct. 12, S&P 500 has been on a downtrend and has decreased by 7.5% during this time. In the same time period, Bitcoin’s price increased by nearly 25%.
It was the tech stocks that were hit the hardest, yesterday Nasdaq fell 2.8%, and since Oct. 12, it has slid more than 8%. Apple stocks were down 5.2% after it posted the steepest drop in quarterly iPhone sales in two years, while Amazon dropped 4.1% because of the increase in costs forecast and waning of a tougher 2021 had Facebook shedding 6.2%.
“Exact opposite happened. Bloodbath, tech stocks in particular. The Warren effect,” said economist and trader Alex Kruger referring to Senator Elizabeth Warren expressing a desire to be Joe Biden’s Treasury Secretary adding to the risks.
“Rare given the size of the stocks dump. Could it be the market appreciates how bullish BTC Warren would be?”
Even gold continues to fall, going as low as $1,860 today before recovering to $1,880. The US dollar is also stuck between 92 and 94 ever since late July.
Even in the Crypto Market
In the cryptocurrency market, after a long time, this weekend is promising to see some activity. Bitcoin’s uptrend is also helping altcoins recover today.
For the past few weeks, altcoins have been losing in the wake of the flagship cryptocurrency’s strong upward movement. However, today Ether made it to $390 while DOT, WBTC, XTZ, and YFI all are up about 5%.
— saylor moon (@MoonOverlord) October 31, 2020
For now, Bitcoin continues to steal the show as Grayscale Bitcoin Trust bought another 5,190 BTC yesterday.
Additionally, CME is poised to close with its highest quarterly close ever and highest monthly close as well. Since its launch in December 2017, the total open interest (OI) on the platform is up 7.5x in terms of contracts.
“Institutions have clearly flipped their view of the world since 2018; as of this week, they were long Bitcoin with no short exposure,” noted analyst FilbFilb.
Leveraged Funds that make up most of the OI have been short as they perpetually are bearish; this week, they further increased their shorts. Other reportables, meanwhile, are pretty flat, retail bullish, and dealers short.
— skew (@skewdotcom) October 31, 2020
“So overall takeaways; Chart; very bullish bucking the trend vs. traditional. Institutions total mindset shift. Dealer Short. OI increasing as price increases. Bullish,” he added.