Bitcoin Resumes Uptrend, Ranking on the Top at $66,000

Bitcoin Resumes Uptrend, Ranking on the Top at $66,000

November 12, 2021 0 By Richard Madera

Bitcoin, the king of cryptocurrencies, topped $66,000 on November 08, 2021. It has resumed an uptrend just like bond gains, although experts believe the digital currency’s price may experience some selling pressure, reaching up to $70k. With the price hike on Monday, bitcoin successfully terminated a three-week indirect toss that observed its persistent demand something like $60,000. Bitcoin ranked the highest with a price value of 66,000 US dollars, especially during the European trading hours. It seemed fully prepared to break the record highest price of over 66k on 20 October 2021.

On the other hand, Ethereum’s blockchain felt proud when its native token, ether, challenged its previous record in the early hours of November 8, 2021. The crypto market witnessed ether’s price briefly passing $4.700 at around 1.00 UTC. The market capitalization has already declared BTC as the largest digital currency in the world. Ether continues to maintain its second position. According to Yuya Hasegawa, bitcoin may get the power to go higher in numerous means. One of them is through inflation-adjusted or sinking real bond yields.

Hasegawa is the crypto market analyst who is serving Bitnak, a Japanese exchange. He believes inflation fears could be a possible reason behind real yields sliding. It might have led to the recent bitcoin rally. Hasegawa’s email to CoinDesk stated that the U.S Department of Treasury statistics reveals the real yield from a 10–year-long period dipped to -1.0% on 4 November 2021. It was the lowest yield recorded in the last couple of months since August.

Most traders perceive BTC as one of the best value assets, which does tremendously well, such as gold. Jerome Powell from the Federal Reserve Chair restated said the pressure for BTC value may be passing through a transitory phase and may face some persistent inflation, going totally out of control. Coinbase mentioned in its weekly email on 4 November 2021 that the supply chain headwinds restrictions and a reduced labor force have made investors think of what can help them get a store of value.

Eddie Wang from OKLink research said that bullish signs for BTC in the medium term are significant on-chain data. The computing power has been running at a steady pace since July this year. It is about the mining difficulty – a metric that explains the hardship miners experience while finding new BTC blocks and gaining rewards is eight times more than ever. The situation has also helped them make over 3k bitcoins since September 2021.

According to Wang, the unique wallets with zero balance had come back to 39 million that is not far from May’s high record of 39.28 million non-zero wallets. Wang referred to the data and said that it was a sign of positive sentiment in the crypto market. The analyst confirmed that the increased value of bitcoins and stablecoins is also a sign of a bull market. Wang observed that more than 6,022 WBTC or Wrapped Bitcoin was released printed on Ethereum in the last week, whereas Tether had one billion hard-copy of ERC-2- USDT on 5 November 2021. Chainalysis Blockchain analytics firm displays what large investors like whales have accumulated with the holding of 1,000 bitcoins. The last week of October witnessed up to 142,000 BTC coins. It took the cumulative tally to nearly 200,000 bitcoin that is the highest rate in the following year.

Many cryptocurrency traders say the latest upside movement of bitcoin appeared to be spot-driven because of the low cost of long holding positions in the perpetual futures market. Coinglass data reveals that 0.0250% was the average funding rate in the first half on Monday. Crypto exchanges do the funding calculations every eight hours. The high funding rate represents excessive bullish leverage. Rising costs and sideward cost action usually force crypto traders to shorten long positions, leading to the withdrawal of the price.