Expert analysis: Bitcoin likely to gain more financial momentum in the near term
Bitcoin's monthly profits currently lay in excess of 33%
- The total market capitalisation of the crypto market edged past the AU $2.5 trillion mark for the first time in nearly three months earlier today.
- BTC has severely outperformed gold over the past decade. In fact, a single bitcoin is now worth 21 ounces of the precious metal.
- Glassnode data suggests that crypto investors are once again starting to HODL BTC at a rapid rate.
The past 72 hours have seen Bitcoin showcase an increasing amount of stability around the AU $61k range. As a result, the flagship crypto is exhibiting weekly gains of around 20% while trading at a price point of $62,200.
In regard to BTCs future price action, blockchain analytics platform Glassnode noted in a recent report that the dominance of Bitcoin transactions exceeding US $1 million has more than doubled — from 30% to 70% — over the course of the last 11 months, adding:
"As the market traded down to the lows of US $29k in late July, the US $1M to US $10M transaction group spiked markedly, increasing dominance by 20%. This suggests that these large-size transactions are more likely to be accumulators than sellers and is again, fairly constructive for price."
Furthermore, thanks to the prevailing bullish sentiment, the total market capitalisation of the crypto sector as a whole rose above the AU $2.5 trillion mark for the first time since May.
Lastly, as per available data available online, an increasing number of crypto investors seem to be gravitating back to a "HODL mentality", with the BTC pool owned by long-term holders reaching an ATH of approx. 83% a couple of days ago.
Though the general atmosphere surrounding BTC seems to be quite positive at the moment, there may be some turbulence witnessed in the coming few days as the US Senate gets ready to vote on a new infrastructure bill that seems to contain some harsh criticism of the digital asset market, particularly cryptocurrency tax procedures.
However, experts are of the opinion that the public, at this point, is fairly well versed with crypto tech and in the unlikely scenario that the government does try anything such as introducing a blanket ban, they will be "willing to fight for it".
Bitcoin continues to outpace gold
As per data made available by cryptocurrency exchange FTX, Bitcoin has severely outperformed Gold over the past decade, with the precious metal actually trading 3.7% lower than it did on the same day all the way back in 2011. To be even more specific, Gold started off 2021 trading at a price point of AU $2,644, only to slide down to AU $2,355 yesterday — thus showcasing a YTD loss of nearly 11%. "A single bitcoin is now worth 21 ounces of gold. Poetic," the trading platform noted.
Disclosure: The author owns a range of cryptocurrencies at the time of writing