The Long and Short of Bitcoin (BTC) This Week
Bitcoin entered the weekend on a bullish note, going above $60,150, just shy of reaching its all-time high of about $61,700.
But over the weekend, the prices end up going lower to $56,500 as $515 million Bitcoin longs got liquidated on Sunday. Overall, more than $1 billion was liquidated on the day, and the funding rate neutralized with the highest at 0.1219% on Bybit.
Now, Bitcoin has started this new week on a red note. As of writing, BTC/USD is trading around $57,500.
While April has started at -2.26% performance, the leading cryptocurrency ended the quarter first as the best one in eight years. Historically, April and quarter second both call for good things ahead.
“Bitcoin's price has a lot of room to go,” says trader and economist Alex Kruger.
Miners are also busy accumulating all the BTC that they have been mining after selling a bunch at the beginning of the year.
Update on miner net position change.
Still not selling, still accumulating, clear trend. pic.twitter.com/lGXui84hOp
— Lex Moskovski (@mskvsk) April 5, 2021
Becoming Digital Gold
Bitcoin has a long way ahead with many more ATHs to hit; however, trader Alex Kruger points out how the digital gold’s run has been “behind in percentage terms.” And as its market penetration saturates, which will eventually, “price growth will then only grow in nominal terms, i.e., will fail to outpace inflation in larger time frames,” he said.
This is because the trader noted, Bitcoin will then “cease to be a fantastic speculative asset, and become a better store of value and medium of exchange. It will be even more akin to digital gold. Gold is an asset which in real terms (inflation-adjusted) is stationary.”
While digital gold will behave like precious metals, which has been flat over the years, Kruger says, “coins that derive their value from cash flow generation (and survive) will continue moving higher in real terms once bitcoin flattens.”
This is where decentralized finance (DeFi) tokens come, which will go in a different path than the largest cryptocurrency.
While BTC would be digital gold, DeFi would be “Onchain stocks,” and as we have seen with the stock market, it has been only going up.
What’s Market Speculating
While this is a long-term picture, in the short term, Bitcoin remains volatile as retail and institutions continue to come alike.
Walmart is stacking #bitcoin. You heard it here first.
— Vik Sharma 🇺🇸 (@vikrantnyc) April 4, 2021
Not to forget that back in 2019, Walmart also applied for a cryptocurrency patent resembling a stablecoin. The Arkansas-based retail behemoth has also filed for several blockchain-related patents.
While Wal-Mart hasn’t declared anything, the market loves to speculate the kind of chain-reaction it will start — putting BTC in the balance sheet, rolling out BTC as a payment method in thousands of its locations, and employees being paid in BTC, which will lead to hyperbitcoinization.