Overheard On CNBC: If It Wasn’t For Bitcoin, Gold Would Be $3K (www.blockcast.cc)

Bitcoin is making headlines left and right on media outlets everywhere, but none more so than CNBC. According to a well respected journalist, during a segment on CNBC it was said that gold would be trading at $3,000 an ounce if it wasn’t for Bitcoin.

Here’s why that statement is probably true, and why the cryptocurrency will continue to take market share away from the aging shiny rock.

Gold Would Trade At $3K If It Wasn’t For BTC

The digital narrative worked like a charm, and Bitcoin is now stealing any capital looking to park somewhere resistant to inflation.

Gold has traditionally served that purpose, and as the economy first began treading on thin ice, the ages old asset that was once the “standard” began to uptrend again.

Related Reading | Seller’s Remorse: Day Trader Dave Portnoy Swears Off Bitcoin

Gold eventually reached more than $2,000 an ounce at the height of its bull market. Natural profit-taking caused the price per ounce to pull back, but rather than go for another leg higher, capital well suited for gold made its way into Bitcoin instead.

Because Bitcoin exists, and money is pouring into the scarce cryptocurrency instead of gold, has prevented gold from trading at $3,000 an ounce, according to a statement overheard on CNBC today.

Statement on @CNBC today : if there was no #bitcoin , #gold would be trading at $3k today.

— Daniela Cambone-Taub (@DanielaCambone) February 19, 2021

The statement was shared in a tweet, fingering the blame on Bitcoin as the culprit for gold’s lack of price appreciation.

How Bitcoin Makes Metals Seem a Lot Less Precious

Charts don’t lie, fortunately, and comparing gold against Bitcoin definitely shows a correlation between when gold peaked and the cryptocurrency really took off.

The change took place just days after gold had topped, and publicly traded companies began buying BTC to add to company reserves.

That trend has now extended into the likes of Tesla, and more corporations are expected to follow suit and could be responsible for Bitcoin’s price appreciation.

Other reasons, however, are undeniably due to gold outflows from hedge funds and other investors. Even retail are now getting back into crypto, but are focused more on altcoins as the price per BTC becomes out of reach for the average person.

Related Reading | Chart Comparison Demonstrates Effectiveness Of Bitcoin Digital Gold Narrative

But even altcoins absorbing some of the capital that could have made its way into gold, is ultimately Bitcoin’s doing. It is because of the first ever cryptocurrency that the rest of the market exists, and according the the statement made on CNBC, is responsible for gold trading at under $2,000, let alone the $3,000 it would be otherwise.

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Bitcoin Liquidation Data Suggest Recent Crypto Rally Wasn’t Driven by Retail Buyers (www.blockcast.cc)

It has been a rough past few days for Bitcoin and the entire crypto market. Following BTC’s tests of its all-time highs in the mid-$19,000 region, the benchmark digital asset faced a massive influx of selling pressure.

However, this was expected, and most investors didn’t believe that it was enough to spark any long-lasting correction.

However, recent comments from Treasury Secretary Steve Mnuchin regarding a potential second eave of crypto regulations caused BTC to see a sustained move lower that shows few signs of slowing down anytime soon.

If this trend persists, then the aggregated market could be poised to see some serious losses in the days and weeks ahead.

One narrative surrounding this recent rally has been that an influx of new retail buyers drove it.

A look into the liquidation profiles of Bitcoin and top altcoins seems to indicate that the derivatives market has played a bigger role in it than many may have realized.

This could be a negative sign for the market, as it indicates that the derivatives market could be behind the recent uptrend, which means it may be somewhat fragile.

Bitcoin Crash Sends Altcoins Reeling Lower

At the time of writing, Bitcoin is trading down just over 10% at its current price of $16,700. This marks a massive decline from its recent highs of $19,500 set at the peak of the recent move higher.

Today’s decline came about as the result of a combination of factors, including the rejection at its highs and comments from the current Treasury Secretary regarding a potential regulatory crackdown.

The altcoin market plunged due to this recent BTC decline, with top altcoins all dropping in tandem. ETH broke below $500 while the rest of the market also saw some serious signs of weakness.

Liquidation Data Suggests Derivatives Market was Behind Recent Uptrend

One investor noted in a recent tweet that the massive liquidations seen due to the recent selloff indicate that the derivatives market is still in full control of most assets’ price action.

“About $2b in liquidations in last 24 hours, only half of it in BTC.  $160m in XRP liquidations?  Maybe last week’s alt rally wasn’t entirely new retail money…”

Image Courtesy of Ari Paul.

The coming few days should provide insight into Bitcoin’s mid-term outlook. Any further selloff could put the cryptocurrency in oversold territory and allow it to see a strong rebound.

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Only 33 Days And Dwindling Remain Where Bitcoin Wasn’t Profitable (www.blockcast.cc)

This week, Bitcoin nearly touched $16,000, leaving very few days remaining where buying BTC would have been unprofitable. In fact, the number has now dwindled down to just around a month left, and in no time at all, there could be no days left where buying the cryptocurrency was a bad decision.

Bitcoin Has Been Profitable Over 99% Of History, Only 33 Days Remain Unprofitable

Bitcoin price has now set a higher high over the 2019 peak, and the only remaining high to take out that’s left is the all-time high at $20,000. With the momentum the cryptocurrency currently has, the target could be taken out any day now.

The number of days left where buying BTC turned out to be unprofitable, is dwindling by the day now that the top cryptocurrency touched just under $16,000 this week.

There are only 33 total days in which you could have bought bitcoin and lost money.

Buying on 99.1% of days has resulted in profit.

This is why we #HODL

— 21Million (@21MillionCo) November 6, 2020

Now, according to data, only 33 days remain where buying BTC was a mistake and turned out to lead to a loss. At over 99% of any other time within Bitcoin’s twelve-year lifetime, buying BTC would have brought at least some positive ROI.

Related Reading | PayPal CEO: Bitcoin Support Will “Fundamentally Bolster” Crypto “Utility”

This timeframe extends from the end of December, through the first week of January.

Only 33 days remain where Bitcoin price traded higher than it is currently | Source: BTCUSD on TradingView.com

What Happens When The Crypto Bull Market Begins?

Buying BTC at any point in 2020 before yesterday would be been profitable. Bitcoin has also doubled in value since the start of 2020 with more than 100% ROI.

Meanwhile, gold, stocks, and other primary investment assets have performed nowhere near as well. Other cryptocurrencies did even better than Bitcoin, but have learned the hard way recently that none of that matters once the leading cryptocurrency gets started in its bull run.

Bitcoin is following the same path as the last market cycle and could reach $300K at the peak | Source: BTCUSD on TradingView.com

The 100% ROI in 2020, is only the beginning if past market cycles are anything to go by. Projecting the last peak over the current market cycle, Bitcoin is following almost the same exact path and would be projected to reach as high as $325,000.

Related Reading | When Crypto’s Most Reliable Sell Signal Fails, The Bitcoin Bull Run Is On

And while past results aren’t a guarantee of future performance, and never is, Bitcoin’s block reward halving could make it pre-programmed to go parabolic every four years to the date. Supply-based theories put the cryptocurrency well over $100,000 in 2021 based on the asset’s scarce supply, and given the momentum, we’ll soon find out if these valuations models are right.

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Author: Refer to Source Tony Spilotro