Digital gold is a reality despite its critics as Bitcoin reclaims the highs of its current level and makes a new all-time high at $69,000. As of press time, BTC’s price has experienced a minor setback but with the potential to take another leg up to $70,000. As this week has shown, moon season could have begun.
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The first crypto market cap has scored a new all-time high on the back of the inflation report published by the United States. Sitting at 6.2%, according to the authorities, it has exceeded growth expectations.
Paper money has hit an all-time low against most hard assets, especially #Bitcoin
To some, the surprising one is gold. It’s the least-good performer. Gold is losing market share to digital gold.#BuyBitcoin
— Dan Morehead (@dan_pantera) November 10, 2021
The Bitcoin thesis has a hedge against inflation that has only strengthened during the past year receiving support from legendary investors such as Paul Tudor Jones, and from important CEOs in the financial sector.
According to a recent report from QCP Capital, the crypto market as a whole reached an all-time high. Bitcoin’s rally seems to be driven by two major catalyzers. First, the CPI report, and second, the activation of the network’s Taproot upgrade.
The rally in risk assets, as investors chase for yields capable of topping inflation rates, has extended into the traditional market. QCP Capital records a rally on equity indices with all-time highs in the S&P 500, Russell, and NASDAQ.
The correlation between Bitcoin and stocks continues and it could remain as a tailwind for BTC’s price in the foreseeable future as more capital flows into these assets. QCP Capital adds:
There seems to be a melt-up across global markets with participants chasing topside on the back of positive earnings and in anticipation of global trade reopening. We expect this broad bullishness to perpetuate in the near-term.
Bitcoin Taproot Buy The Rumor, Buy The News?
Taproot, one of Bitcoin’s biggest upgrades since the deployment of SegWit, is expected to be released by the end of this week or the beginning of the next. With this event on the horizon, many traders could be tempted to abide by the “Buy the rumor, sell the news” adagio, but could find themselves trapped by more appreciation. QCP Capital said:
BTC price has no doubt been supported by the upcoming Taproot upgrade (…). This is the largest upgrade since SegWit in 2017 and will improve a whole string of key functions. We are keeping long BTC into this major event.
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The firm believes Bitcoin could have entered a “positive feedback loop” with major events, as Taproot and the CPI report, triggering more appreciation for the cryptocurrency.
— Holger Zschaepitz (@Schuldensuehner) November 10, 2021