2020-10-27 15:17 |
Bitcoin is standing strong above $13,000.
In the ongoing bullish market structure, Bitcoin has spent a record amount of days above $10,000 and closed above $13k for the first time since hitting the 2017 bull run.
With this, investor sentiments have been of exhilaration with Net Unrealized Profit/Loss (NUPL) in the “Belief” zone for the past week. As a matter of fact, more than 50% of the Bitcoin market cap is currently in unrealized profits, a level not seen since August 2019, as per Glassnode.
Source: GlassnodeAccording to analyst Don Alt, on the BTC monthly, “26 days later and we've got this beast of a candle this month. $13.8k is going to be an interesting area, besides that there really isn't that much left on this chart. High timeframes are bullish as long as we trade above $10k.”
Sucking the Life Out of AltcoinsThe recent rally saw Bitcoin sucking the life out of the digital assets market as money rotated into the leading digital currency. Altcoins are back in the red mode today, while BTC is unmovable above $13k.
Rotation of capital exists in the traditional investing world too. Still, in digital assets, it is “more powerful than anything seen in other asset classes,” said Jeff Dorman, Chief Investment Officer at Arca.
This seldom seen event where BTC is up, and everything else is down, however, is “highly unlikely” to hold for a longer period of time, he said.
“As institutional investors continue to invest in venture capital funds and fundamentally based research-driven hedge funds, the need to benchmark versus Bitcoin will subside, as will the ability for funds to sell everything into Bitcoin,” explained Dorman.
But until then, retail investors and traders continue to chase Bitcoin at the expense of other tokens.
Also Read: Billionaire hedge fund manager’ Paul Tudor Jones: Bitcoin Rally in its “First Inning,” Compares it to Investing in Apple & Google
A Broad Sell-OffInterestingly, Bitcoin is not only beating altcoins but also traditional markets. During the economic downturn, Bitcoin outperformed pretty much everything – stocks, bonds, gold, and oil.
Yesterday, the stocks experienced a broad sell-off across Europe, Asia, and US markets. Even yields retreated as the US saw a record number of coronavirus cases.
S&P 500 fell 2.74% before they recovered 0.89% by the end of the day. Although Bitcoin also dropped 3.3%, it has made its way back to $13,335.
And with that, the correlation of Bitcoin and the equity market has dropped to zero.
However, one trader feels, “if the stocks keep looking ugly like this it will eventually reach bitcoin sentiment too.”
“The question is what kind of a dip they will give,” he added.
Bitcoin (BTC) Live Price 1 BTC/USD =13,579.5537 change ~ 5.35Coin Market Cap
251.6 Billion24 Hour Volume
31.66 Billion24 Hour Change
5.35 var single_widget_subscription = single_widget_subscription || []; single_widget_subscription.push("5~CCCAGG~BTC~USD");The post Stocks Looking 'Ugly' While Bitcoin’s 50% Market Cap in Unrealized Profits first appeared on BitcoinExchangeGuide.
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