October marked the stock market recovery by Bitcoin (BTC) with endless entries. In addition to the disconnect with the S&P 500 index, the cryptocurrency has shown a similar dominance to that recorded since 2017 and its highest price ever. Another illustration of the return to the form of the asset, he continues to pull off, now ahead of gold. For Real Vision Group CEO Raoul Pal, this is a harbinger of bullish cycle for bitcoin. The latter is not the only one to expect an explosion in the asset’s value for the year-end. Explanations.
The reasons for Bitcoin’s current dominance
There is certainly cause for celebration among bitcoin fans given that the asset outperforms gold and US stocks. A position owed to their existence three main factors that together influenced market perception. The first factor is nothing more than integrate cryptocurrencies with the values supported by the PayPal payment service. Coming next institutions’ growing interest in Bitcoin, which has continued to invest more in assets such as Square, MicroStrategy et Stone Ridge. Finally, the significant optimism arises high-frequency bitcoin charts after hitting $ 12,000.
A situation that led Mr Pal posted the following tweet: “ Gold is falling against bitcoin, as expected cc: @michael_saylor Everyone is taking notice. Next thing I’m waiting for is that the correlation between BTC and the dollar and between BTC and stocks is also collapsing... we’ll see. #Bitcoin ”. If both events come to an end, which seems to be the case, the individual and the trading community are expecting intensify the innovative development of bitcoin.
Big investors at play: a deciding factor
Long reluctant to take a significant position in the asset, large investors now appear to have left themselves convinced by its potential. The fact that they didn’t wait for the asset to outperform gold, but that they are precursors is a strong signal sent to the market. I would already remember that M. Pal he recently suggested that companies like Apple and Microsoft should invest in assets to hedge against inflation. Now that Bitcoin continues to gain ground against gold and stocks, prominent investors are expressing greater support for cryptocurrency.
If bitcoin continues to perform this way at the expense of gold, it will undoubtedly strengthen its image as a safe haven in the market. The immediate consequence would then be the influx of capital from investors who wish to protect themselves against the dollar which appears to be losing pace.