Bitcoin Analyst Believes The Surge To $73,800 Isn’t As Impressive As Many Think: Here’s Why
Bitcoin price is targeting all-time highs but is yet to break the 2021 BTC ATH when inflation is factored in – in this article, let’s explore Bitcoin versus gold.
Bitcoin price has been marching higher for the better part of 2024. After breaking $70,000 and printing fresh all-time highs at $73,800, the coin cemented its position in crypto.
BTC is the world’s most valuable coin, with a market cap of over $1.3 trillion. However, supporters expect even more gains in the coming months, pushing the market cap even higher.
If anything, bulls are targeting $100,000 this year, banking on, among other factors, the expected post-Halving rally.
The 21-week moving average is everything you need.
Comfortably coasting to higher prices.#Bitcoin pic.twitter.com/ByFgGSZ2pX
— Jelle (@CryptoJelleNL) May 29, 2024
The Bitcoin Rally Is Not As Impressive As Many Think
But even as traders are ecstatic and the coin near record highs, Peter Brandt, a trader and analyst, thinks the rally is not as impressive as it seems.
In a post on X, the analyst pointed out that when the current gains are adjusted for inflation, BTC has yet to break the 2021 peaks.
Considering this, recent gains might not represent a break from its previous performance in the last bull cycle in 2021.
Further dampening the celebratory mood, the analyst compares Bitcoin’s performance to gold, a traditional safe-haven asset.
(BTCUSDT)
And this yields the same performance: Bitcoin has not definitively broken above 2021 highs.
BTC prices continue to trend below 2021 levels when adjusted for inflation and compared to gold even despite the successful launch of the highly anticipated spot Bitcoin ETFs in the United States.
When these products launched, billions were sunk into Bitcoin, increasing prices.
DISCOVER: How to Buy Bitcoin Spot ETF in June 2024
Dune Analytics data show that all spot Bitcoin ETF issuers in the United States hold over 4.2% of all BTC in circulation.
(Dune)
Will Post-Halving Expectations And Spot ETFs Spark Demand?
The hope is also high that BTC will rally post-halving, which is in line with historical performances. Usually, whenever the network slashes miner rewards and demand is sustained—or even increased—as is the case now—prices tend to rip higher, breaking all-time highs.
For example, after 2020, BTC broke $20,000, spiking to as high as $70,000 in November 2021.
But looking at price action, these primers (spot Bitcoin ETFs and Halving) haven’t conclusively helped prices break new ground. It is especially true when the analyst’s observation is factored in.
If BTC prices break these ceilings, a true bull market has begun. For now, enthusiasm is dampened by the failure of prices to resume the uptrend of May 20. Bulls have yet to break the multi-week resistance at $72,000.
(BTCUSDT)
Any uptick above $72,000 and March highs would yank BTC to fresh all-time highs from an inflation-adjusted perspective and versus gold.
EXPLORE: Crypto Markets Brace For Super Cycle as Bitcoin ETFs Scoop 5% of BTC Supply
Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
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