One Reason Why Bitcoin (BTC) May Continue On Its Parabolic Trajectory
Despite the volatility this week, due to Coinbase making its debut on Nasdaq, the Bitcoin price is holding strong above $62,000.
Amidst this, over $623 million worth of BTC stolen in the Bitfinex hack in 2016 moved, representing 10% of the total 119,756 BTC originally stolen. This could have been an attempt to move unseen amidst all the worldwide frenzy around “COIN” listing.
After hitting nearly $65,000 on Wednesday, BTC took a hit to $61,500, which in part could be due to stolen bitcoin moving and in part COIN shares ending up lowering 24%. But the market expects BTC to be back to a new ATH before taking over $70k.
While anything can happen in the market, we are far from topping out based on past performance.
As CoinGecko notes in its latest 2021 Q1 report on the cryptocurrency industry, the ascent of Bitcoin in this cycle (2020- 2022) is mimicking the trajectory it took in the last cycle (2016-2018).
As we recently reported, despite rallying 1,610% from March lows, due to a wave of institutional adoption amid a conducive macro-environment, BTC is only 225% above its 2017 peak of $20,000. By comparison, the 2017 peak was 1,578% above 2013 ATH, and the 2013 peak was 3,590% higher than the 2011 ATH.
Interestingly, unlike last year and the previous cycle, this cycle we see very low volatility despite bitcoin becoming a trillion-dollar crypto asset, making its way to a six-figure price.
— skew (@skewdotcom) April 15, 2021
One reason why bitcoin might continue its trajectory, according to the report, is inflation. After spending trillions of dollars, another $1.9 trillion bill was passed this week that will again pour more money into the market.
Moreover, with the Federal Reserve determined to keep interest rates low, there is a growing fear of rising inflation, a setup that has made Bitcoin an increasingly viable hedge against the inflationary macro-environment stated Coingecko.
As we have seen, Bitcoin continues to outperform all major asset classes, but while the stock market is doing good, making new ATHs, gold, and bonds (TLT) did not amidst a “rally” in the U.S. Dollar index and rising bond yields.
Bitcoin's market capitalization is actually just 10X away from flipping gold.
When it comes to the rest of the market, Ether is finally moving up, hitting $2,400 this week. But with rising prices comes congestion and fee spikes, making it not conducive for retail users to do even a simple swap using DEXs. ETH 1.22% Ethereum / USD ETHUSD $ 2,323.76
$28.351.22% Volume 16.71 b Change $28.35 Open $2,323.76 Circulating 116.89 m Market Cap 271.61 b 20 h Big Institutions Are Buying ETH for the First Time, Over 25% of Supply Already Used in Smart Contracts 1 d Tesla Reported No Changes in Digital Assets in Q2 But Recorded A Bitcoin-Related Impairment of $23 Million 1 d Bitcoin Hash Rate Recovers to 110 TH/s as Price Rallies Past $40k, Thanks to Largest Short Squeeze Ever
With ‘Ethereum-Killers' racing to offer the cheapest gas fees, this turned out to be good for Binance’s BSC. SOL 1.63% Solana / USD SOLUSD $ 28.61
$0.471.63% Volume 272.07 m Change $0.47 Open $28.61 Circulating 272.64 m Market Cap 7.8 b 2 d Tether in 'Open Dialogue' with DOJ, says Company on Report of its Executives Being Under Probe for Bank Fraud 1 w Neon Labs Integrates Cross-Chain EVM Solution Into Solana, Bringing Ethereum Dapps to the Blockchain 1 w Solana Based Crypto Wallet Phantom Raises $9M to Scale Operations BNB 0.35% Binance Coin / USD BNBUSD $ 315.87
$1.110.35% Volume 1.48 b Change $1.11 Open $315.87 Circulating 168.14 m Market Cap 53.11 b 18 h A Shift in Momentum: Binance Yields to Regulatory Pressure, the Definition of HQ Changing for CZ Too 2 d FCA's Crackdown Hits Another One After Binance, Which Has 'Not' Seen Institutional Activity Slowdown 2 d Binance and FTX Cut Down Leverage to Just 20x from Over 100x ADA -0.76% Cardano / USD ADAUSD $ 1.29
-$0.01-0.76% Volume 1.65 b Change -$0.01 Open $1.29 Circulating 32.07 b Market Cap 41.31 b 2 d Bitcoin and Ether Rallies to Confirm Double-Bottom Pattern, Those Sitting on Sidelines in Stablecoins to Take Them Higher 1 w Bitcoin Retesting the Lower-End of Range, OI Still Continues to Soar While GBTC Unlocks Now Behind Us 1 w Cardano Launches Latest Version Of Alonzo Testnet, Dubbed Alonzo White
“Total TVL is growing, but BSC’s TVL appears to be stealing Ethereum’s thunder – in Q1 2021 alone, BSC’s TVL rose from 3% to 27%. Apr-21 Ethereum is likely losing ground because of rising gas fees which drives away retail users,” noted the report.