First Mover: Bitcoin’s Latest Rally Proving Irresistible as Bitwise Assets Top $100M

Bitcoin was lower, pausing a powerful rally that has seen the largest cryptocurrency jump 25% in October to the highest levels since June 2019. Traditional financial-media outlets like Bloomberg News were writing about it.

Prices appeared to hit resistance just below $13,900, close to last year’s high. But analysts said that if the level is breached, there appear to be few brake points before the 11-year-old cryptocurrency ascends to $14,000 or beyond.

“Between the levels of $14,000 and $20,000, there is insufficient price data to single out any specific points of resistance,” Mati Greenspan, founder of the foreign-exchange and cryptocurrency research firm Quantum Economics, told subscribers in a newsletter.

In traditional markets, European stocks dropped to a five-month low and U.S. equity futures were declining, amid investor concerns about rising coronavirus case loads. Gold weakened 0.4% to $1,900 an ounce.

Market moves

Bitcoin‘s recent rally as U.S. stocks floundered has simply widened the cryptocurrency’s outperformance compared with traditional markets. As more investors tune in, the expanding gap could become a self-reinforcing trend.

Following Tuesday’s price surge to a new 2020 high around $13,700, bitcoin is now up 90% for the year to date. That puts the cryptocurrency well on pace to exceed last year’s 94% gain.

It’s also far ahead of the Standard & Poor’s 500 Index of large U.S. stocks, where a recent slide has trimmed the year-to-date gains to just 5%, after a 27% rise in 2019.

Many big institutional investors, such as pension funds, are under pressure to hit annual return targets of 7%, and with stocks now faltering and bond yields close to historic lows, they’re casting about for alternatives. Bitcoin’s track record alone might be enough of a sell, but the 11-year-old cryptocurrency also represents what could be the beachhead of a brand new, state-of-the-art financial system – the digital rails, as the…

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