Bitcoin Market Cap Reaches ATH with $20k in Sight; Gold Dumping Hard & USD on to Multi-Year Lows

November 24, 2020

New York (Nov 24)  With more than 70% surge in this quarter, Bitcoin has been trading around $18,500, with volume slowing down to $4.7 billion when today BTC broke into a new 2020 high at about $19,150.

With these gains, Bitcoin’s market cap has reached a record of over US$350 billion, overtaking the previous 2017 high.

It’s yet to be seen if Bitcoin will continue its ascent to $20k or we come back down under $19k.

The price action this week is expected to be impacted by the looming derivatives expiries, and “any dips are expected to be bought up promptly,” said Denis Vinokourov of Bequant, who added that despite these expiries, “the curve structure remained rather steep and the open interest (OI) rose to a new record high.”

The OI on Huobi has risen towards $750mln and OKEx through the $1.2bln; even BitMEX is at its highest level since late September at around $750mln. On Binance, OI has hit an all-time high of $1.17 billion.

Bears are Ruling Gold

Compared to BTC’s 156% year-to-date performance, the equity market (S&P 500) has only increased by 10.7%.

Even the precious metal that made a new peak at just above $2,000 is up only 20% YTD. Ever since hitting this high in early August, gold has been on a decline.

“Bitcoin is more stable than Gold as an investment vehicle. If you're in it for the long run, you want long term stability of returns for the risk you're undertaking. Day to day price volatility drops to the background for long term investors,” noted on-chain analyst Willy Woo.

The bullion has fallen to $1,805 level, to July levels on Tuesday, and with that, “a single Bitcoin is now worth over 10 ounces of gold.”


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