Bitcoin Sees Spike in Price Following Recent Stock Rally – Analysis
Overview
- Stock Market Gains Could Help Drive Bitcoin Higher
- Bitcoin’s intrinsic value has never been higher says, founder of Capriole Investments
- Glassnode recently reported that the Bitcoin price could see an ‘imminent’ breakout.
At present, the whole cryptocurrency market is up despite Bitcoin failing to break $9,400. As per the press time, Bitcoin price is trading at $9,265.74 with 0.84% gain.
With Stock Rally, Bitcoin Slightly Rises
Currently, Bitcoin is trying to break out of its weeks-long pattern of consolidation as traders try to push it in the direction of the US stock market. Also we can see the stock market has been able to catch some notable upwards momentum, with all the benchmark indices closing the day up well over 1%.
Although in recent weeks Bitcoin’s correlation with the US stock market has degraded slightly, yet, the general connection between the two markets continues. However, this is likely to bolster BTC’s daily close today in the coming few hours.
On the other hand , the Chinese stock market also appears to be laying the groundwork for a fresh bull run, which could provide Bitcoin with a boost as the country’s investors build a larger appetite for risk.
What will be the price in the coming days? Will Bitcoin Break $10K resistance ? or Just hover within $10k ? Let’s find out !!
Cryptocurrency analytics startup Glassnode recently reported that the Bitcoin price could see an ‘imminent’ breakout. For the past 6 weeks , Bitcoin has been in a bullish regime of Glassnode’s compass.
According to Glassnode Network Index, with the declining exchange deposits and transactions done on-chain, the liquidity component of the index lost six points. As a result, this loss was offset by an equivalent gain in the sentiment department because of holders accumulating more coins.
With both Bitcoin’s hash rate and energy value reaching new highs, strong fundamentals definitely play into the hands of the bulls. However, Bitcoin’s lackluster price performance shows that the bears are slowly gaining ground.
Bitcoin’s Energy value hit an all-time high
In a tweet, Charles Edwards, founder of crypto asset management firm, Capriole Investments states that “Bitcoin’s intrinsic value has never been higher”
In response to this, One twitter user asked for an explanation of BTC’s Energy Value, to which Charles replied by saying that bitcoin’s 10-year price pattern follows a 1:1 proportionality with mining energy input.
Further, Founder of the Nano foundation Colin LaMahieu responded and opposed his statement saying “Energy consumption follows price, as it’s designed, price doesn’t follow energy consumption”.
You may also read – Comparison of Gold Mining, Bitcoin Mining With Cost and Energy consumption
The war of words went on when Colin opposed the idea of considering ‘cost inputs’ to calculate bitcoin’s value.
