Bitcoin, an alternative to inflation. A few weeks ago, Blackrock made a Bitcoin ETF request with the SEC (the US financial regulator). Pending SEC response, Larry Finkthe boss of blackrock, makes thein praise of Bitcoin. Sweet words that come just in time, because the Bitcoin price is slowing down and evil to stay above 31,000 dollars. Still, could this be enough to keep investors buying the king of cryptocurrencies?
Bitcoin price stagnates around $30,500
While BTC has managed to score a new high in 2023 above 31,000 dollarsit is currently stagnating at around $30,500. Within 24 hours, the BTC price fall by almost1 %.
Despite everything, the share price is still in the green in a week’s time. It shows a rise by almost 20 % in one month. The BTC/ETH pair stagnates in 24 h and shows a down 3.2% in one week. Capital seems to be turning to Ethereum, but will the trend continue?
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Bitcoin needs to multiply its price by 15 to match gold
The CEO of Blackrock declared yesterday that the Bitcoin was a alternative to gold. This raises the question of whether Bitcoin has the capacity to catch up with gold. The capitalization ofgold is 10,000 billion dollars. At the time of writing, the capitalization of the Bitcoin fluctuates around 650 billion dollars. In concrete terms, BTC still needs to multiply its price by 15 to reach the capitalization of gold.
So, you’ll have to be patient before we see Bitcoin – perhaps one day – on a par with gold. If we look at Bitcoin’s past performance, in just one cycle, it’s possible to make such a performance.
Indeed, during the first cycle (green), the course has been multiplied by 539 before marking a market top. Also, during the second and third cycles (orange and blue), the course has been multiplied by more than 15 before reaching a market peak. However, as the cycle progresses, the performance diminishes. As a result, a 15-fold increase in Bitcoin’s price over the course of a cycle seems complex to achieve.
Bitcoin price attempts to hold support at $30,500
Yesterday, the price slipped below support at $30,500. Buyers are trying to hold on to this support level.
In the event of a reboundthe price could return to the resistance at $31,500. Whatever happens, this resistance will have to give way to get back to the next resistance level at $35,000. Watch out! Si sellers show upthe price could return to the support at $29,800. The RSI must develop above 68 for buyers to regain control of momentum.
The price of Bitcoin still has a long way to go before it reaches gold. Indeed, while BTC has already shown extraordinary performance in the past, it would appear that its performance is falling over time. The capitalization of BTC increases over time, and more and more capital is needed to achieve equivalent performance. For its part, the price tries to maintain the support at $30,500. Buyers would have to keep pushing to get Bitcoin back to $35,000.
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