Markets al día is an exclusive summary of the news that moves the bitcoiner economy. It is sent in advance by email to a list of subscribers and then published every Monday on CriptoNoticias. If you want to have the information in advance, subscribe to the list here.
The price of bitcoin (BTC) broke the $ 16,000 barrier for the first time since January 2018, leaving behind speculation about the possible effects that the US presidential elections could have on this market. This result has been seen as proof that Bitcoin is less and less susceptible to variations caused by specific events in politics or traditional markets, from which it has been decoupled as recent studies show.
The upward momentum was reflected in the price that bitcoin reached in Colombian pesos. It registered its maximum historical price above COP 56 million on November 13, according to data from the Buda exchange. According to these figures, the official currency of Colombia has depreciated compared to the dollar. With everything, bitcoin is still 17% below its 2017 all-time high.
Bitcoin reached its all-time high in Colombia, despite being at 17% of USD 20,000 in 2017. Source: Buda.
The behavior in the price of bitcoin could be related to the bull cycle that occurs after each halving, as has been described in the past.
Meanwhile, the price of bitcoin above $ 16,000 represents a 40% increase in a 30-day range, according to LiveCoinWatch. However, further corrections are expected to occur before bitcoin hits the $ 20,000 mark.
Bitcoin decoupled from traditional markets
A study by the analytics team at exchange Kraken indicates that Bitcoin decoupled from traditional markets in late October. In that period, the correlation between bitcoin and the Standard & Poor’s 500 index was negative, at -0.34. In fact, the S&P 500 only grew 3%, while bitcoin approached 28%.
In relation to gold, the correlation was -0.22, contrasting with the values for August (and for most of the year), which reached 0.70 (or 70% correlation).
Tweet of the week
Renowned bitcoin analyst Willy Woo commented with a chart that bitcoin is at the start of a bull cycle.
Note: The translation “halves” refers to Bitcoin halvings. Source: Twitter.
Investors will moved from ETH and DeFi to Bitcoin
A report from the analytics firm Kaiko indicates the double-digit decline in the trading volume of the top eight cryptocurrencies in the DeFi market. Yearn Finance had the worst performance at -54%, followed by UniSwap and Aave which suffered a drop of -40%. Investors would also have come from ether (ETH), from Ethereum, after having invested in this cryptocurrency during August and September, to turn to BTC. This suggests that investors may be buying bitcoin with the expectation of a better return for the later months of the year.
Another bullish factor for bitcoin that the Kaiko report points out is the increase in the gap between purchases and sales of BTCUSD on different exchanges. At exchanges such as Bitstamp and Gemini, purchases outperformed sales by a factor of 4-5 in October alone.
A billionaire says bitcoin is better than gold as a reserve asset
A piece of news that is consistent with the adoption trend of recent months, exposes the opinion of Stanley Freeman Druckenmiller, one of the most successful hedge fund managers in the United States. Druckenmiller said in a recent interview with CNBC that he is convinced that bitcoin is an asset that can function as a store of value better than gold, in the event of a devaluation of the dollar (USD).
Bitcoin has the distribution of more equal wealth
The Coin Metrics company produced a report indicating that Bitcoin has the highest equal offer index (IIO) in the market, as we reported in CryptoNews. This means that its supply is more distributed than that of other cryptocurrencies. Specifically, the IIO index shows a comparison between the poorest Bitcoin addresses (less than 0.00001% of supply) and the richest 1%.
Compared to other cryptocurrencies, Bitcoin has a better supply equality index. Source: Coin Metrics.
According to the report, the greater “fair distribution” of bitcoin is due to the fact that mining activity constantly puts more BTC into circulation to support operating expenses.