Bitcoin prices soared to $97,765 in early Asian trading on Thursday, Nov. 21, according to data from Tradingview on Bitstamp. The cryptocurrency has now gained 40% since Donald Trump’s presidential election victory earlier this month, adding more than $28,000 to its price. To put this into perspective, one Bitcoin traded for around $28,000 in October 2023, just over a year ago.
Experts and analysts are talking about a supply shock in the Bitcoin market. Demand for BTC is far outstripping supply. Nate Geraci, president of the ETF Store, noted that almost 20 million BTC have already been mined. Between four and five million are considered “lost,” and one million are held in Satoshi Nakamoto’s wallets. Bitcoin ETFs now hold over one million BTC, and MicroStrategy is on its way to holding 400,000 Bitcoins. Geraci commented that there’s only so much Bitcoin to go around.
Charles Edwards, founder of Capriole Fund, said many people cannot imagine Bitcoin being worth more than $100,000. He believes retail investor fear of missing out (FOMO) will kick in when this milestone is hit. He mentioned that a lot of supply will be unloaded between $90,000 and $100,000 for this reason. Beyond $100,000, the masses may re-enter the market due to FOMO.
Whales, or large Bitcoin holders, are still accumulating BTC even at these peak prices. Lookonchain reported that one whale accumulated 3,289 BTC worth over $300 million from Binance over the past two days. This whale currently holds 25,010 BTC worth $2.37 billion. This shows that big players expect the price to go higher.
Wednesday was also another big day for spot Bitcoin ETFs. BlackRock’s IBIT ETF saw a massive $628 million inflow. The increasing holdings of Bitcoin ETFs are impacting the available supply in the market.
Bitcoin dominance continues to increase, hitting 61.5% on Nov. 21. This is its highest level since March 2021. This dominance has pushed the total crypto market cap to an all-time high of $3.28 trillion. However, not all cryptocurrencies are sharing in this success.
Ethereum continues to weaken. It remained flat on the day, trading at $3,100 at the time of writing. The ETH/BTC ratio is at its lowest point in over three and a half years. Ethereum’s value against Bitcoin has reached a four-year low as Bitcoin’s price surpasses $94,000. The ETH/BTC trading pair fell to 0.03302 BTC, marking a significant decline from mid-2023 levels above 0.070 BTC.
Since mid-2023, Ethereum has consistently lost ground against Bitcoin. This trend is characterized by lower highs and lower lows on daily charts. The decline represents a 51.06% drop since May 2023, highlighting Ethereum’s underperformance compared to Bitcoin.
The majority of altcoins are also in the red today as Bitcoin continues to eat away at their market shares. There were larger losses for Dogecoin (DOGE), Shiba Inu (SHIB), Sui (SUI), and most of the meme coins. Hopes for an altseason are dwindling amid Bitcoin’s surge and altcoin underperformance. Altseason is a period when altcoins outperform Bitcoin, but this doesn’t seem to be the case now.
Despite the losses, most altcoins have managed to recover a big portion of their recent declines. However, Bitcoin’s increasing dominance affects altcoin market shares and investor sentiment. As Bitcoin’s price rises, investors may shift their focus from altcoins to Bitcoin, further impacting altcoin prices.
Experts discuss the impact of lost Bitcoins on the market supply and price. With millions of Bitcoins lost and Satoshi’s one million BTC untouched, the actual circulating supply is lower than the total mined. This scarcity contributes to the supply shock and drives prices higher.
MicroStrategy, a business intelligence company, is on track to hold 400,000 Bitcoins. Their continued accumulation shows strong institutional interest in Bitcoin. Whales holding large amounts of Bitcoin, like the one who accumulated over 3,000 BTC recently, indicate that big players are confident in Bitcoin’s future.
Retail investors are expected to experience FOMO when Bitcoin surpasses the $100,000 milestone. This could lead to a surge in buying from the masses, pushing the price even higher. The market may see rapid movement beyond $100,000 as retail investors rush to buy Bitcoin.
Bitcoin’s recent surge contrasts with Ethereum’s downward trend against Bitcoin. Ethereum’s underperformance is highlighted by its significant drop in the ETH/BTC ratio. The decline in Ethereum’s value against Bitcoin raises questions about its future performance.
BlackRock’s IBIT ETF seeing significant inflows amid Bitcoin’s all-time high shows growing institutional adoption. The increasing holdings of Bitcoin ETFs impact the available supply, contributing to the supply shock.
Bitcoin’s dominance increase affects altcoin market shares and investor sentiment. As Bitcoin continues to outperform, altcoins may struggle to keep up. Investors might prefer to invest in Bitcoin rather than altcoins, affecting the overall crypto market dynamics.
The crypto market is experiencing shifts in market share. Bitcoin’s dominance and the declining ETH/BTC ratio illustrate changes in investor preferences. The total crypto market cap hitting an all-time high reflects the overall growth of the market, despite some cryptocurrencies underperforming.
Retail investor behavior plays a significant role in these developments. The anticipation of FOMO kicking in when Bitcoin surpasses $100,000 could lead to increased market activity. Understanding these market dynamics is important for anyone interested in cryptocurrencies.
Bitcoin mining statistics show that nearly all the 21 million Bitcoins have been mined. With millions lost and significant amounts held in inactive wallets, the supply is limited. This scarcity, combined with high demand, contributes to the rising prices.
Cryptocurrency whales continue to influence the market. Their large holdings and recent accumulations can impact prices and market sentiment. Observing whale activity provides insights into market trends.
Bitcoin’s surge to $97,765 and its potential to surpass $100,000 are significant milestones. These events highlight the evolving landscape of cryptocurrencies. Investors, both institutional and retail, are watching closely as the market develops.
The interplay between Bitcoin and altcoins like Ethereum is an important aspect of the crypto market. Ethereum’s decline against Bitcoin raises questions about its role and future in the market. Altcoins facing losses while Bitcoin dominates indicates a shift in market dynamics.
The current state of the cryptocurrency market reflects complex interactions between supply, demand, investor behavior, and institutional involvement. Keeping informed about these factors is crucial for enthusiasts and investors alike.
