Why Bitcoin Will Soar Above Its Fresh Record: Van Straten

Other
cryptocurrencies
are
soaring,
too.
Ethereum’s
ether

(ETH),
for
instance,
just
surpassed
$3,000
for
the

first
time
since
August.

What’s
intriguing
is
that
instead
of
selling
off,
bitcoin
plowed
through
prior
highs
on
Nov.
6
($76,400),
Nov.
7
($76,900)
and
Nov.
8
($77,200).
Gold
and
U.S.
equities
are
doing
the
same
thing,
hitting
highs
and
then
breaking
them.

This
illustrates
how
strong
the
current
rally
is
—
and
how
likely
it
is
to
continue.

The
bitcoin
rally
can
keep
going
due
to
several
factors.
First,
Google
searchers’
interest
in
the
term
is
still
relatively
low.
Searches
were
considerably
higher
in
November
2021
and
March
2024,
so,
even
though
search
interest
has
perked
up
in
the
past
week,
this
suggests
we
are
far
away
from
market
euphoria.

CoinDesk
has
been
monitoring

profit-taking
over
the
past
few
weeks.
Are
investors
cashing
in
as
bitcoin
soars?

They
are.
Glassnode
data
shows
that
on
Nov.
6,
the
day
after
the
U.S.
election,
$3.5
billion
of
profit
was
realized
as
bitcoin
jumped
from
$68,000
to
$76,000,
while
the
total
for
the
next
two
days
was
$3.2
billion.

However,
even
though
this
may
seem
like
a
lot,
it’s
tiny
compared
with
prior
all-time
highs.
In
March,
when

bitcoin
finally
rose
above
its
2021
record,
profit-taking
soared
to
$10
billion.
Throughout
the
2021
bull
run,
it
got
as
high
as
$6
billion.

It
was
even
higher
in
2017
—
sometimes
around
$4.6
billion
—
when
bitcoin
records
were
around
$20,000.
Current
profit-taking
isn’t
even
topping
that
despite
bitcoin’s
price
being
far
higher.

Bitcoin
has
been
stuck
between
$50,000
and
$70,000
for
seven
months.
Despite
breaking
out
of
that
range,
investors
are
patiently
waiting
for
higher
prices.

Using
inflation
from
the
U.S.

Bureau
of
Labor
Statistics,
you
can
measure
how
much
purchasing
power
has
been
lost
versus
previous
years.
Bitcoin’s
November
2021
record
of
around
$69,000
converts
to
about
$78,000
in
today’s
U.S.
dollars,
barely
above
its
current
price.

Investors
may
want
more
for
their
bitcoin
on
an
inflation-adjusted
basis.