Bitcoin price clocked fresh 2020 highs at above $ 12.700 after PayPal announced support for cryptocurrencies

According to the CIO of cryptocurrency hedge fund Arcane Assets, Cole Garner, Bitcoin’s market is completely segregated between the bullish forecast factors. In other words, Bitcoin price is now clearly correlating with traditional financial markets.

bitcoin-price-clocked-fresh-2020-highs

BTC/USD 4-hour chart | Source: TradingView

Is separation from the traditional financial market good for Bitcoin price?

Based on the chart of Bitcoin, gold, S&P 500, and Ether, Bitcoin is quite prominent, delivering positive returns while other assets are in trouble.

He said:

“BTC’s correlation to traditional markets appears to be unwinding. If this persists in the coming weeks, it’ll be the biggest story in crypto.”

bitcoin-price-clocked-fresh-2020-highs

Bitcoin (orange) vs. gold, S&P 500, and Ethereum. Source: Eric Twitter

Bitcoin has previously demonstrated a long-term correlation with the S&P 500, forming a close relationship with gold in the months following the COVID-19 crash in March.

Despite Bitcoin’s latest gain – above $ 12,000 – the funding rate shows support for long-term investments with short-term costs – an encouraging sign for further momentum. Not so long ago, Bitcoin unexpectedly rallied back to $ 12,000 after taking the time to settle a key resistance point at $ 11,900.

There is currently very little hindering the price action above $ 12,000, as Bitcoin has been through extreme periods below that before. Other factors that have persisted from the previous weeks and months, notably the lack of whale cash flow, suggest that the desire to sell large amounts of Bitcoin remains low.

bitcoin-price-clocked-fresh-2020-highs

Bitcoin exchange balances vs. price with the latest drop highlighted. Source: Cole Garner/ Glassnode

In conclusion, Garner’s sole concern is that, if trends on Twitter are a reliable metric, very few sellers would expect the current scenario.

He said:

“Too many people have not prepared for this.”

This view stems from a recent survey in which 35% of respondents claim that Bitcoin only accounts for less than 10% of their crypto portfolio.

Bitcoin clocked fresh 2020 highs after PayPal announced support for cryptocurrencies

As AZCoin News reported, PayPal will allow customers to use cryptocurrency to shop at 26 million stores on its network, starting in early 2021.

About a few hours later, Bitcoin started to rise almost 6% in 24 hours, trading above $ 12,600. Overall, Bitcoin is now up nearly 9% from the previous week and more than 13% from the previous month, after a slow but steady increase since the beginning of September. Bitcoin is trading at around $ 12,742, up almost 7% in 24 hours, almost 13% in the past 7 days.

Even so, this sudden upside event caused over $ 75 million of Bitcoin short positions to be liquidated in just one hour. Specifically, $ 35 million was liquidated on OKEx, while at least $ 40 million on BitMEX fell into the same situation. But since these two markets only make up a portion of the total derivative volume, they are more likely to be liquidated.

Even so, the market is generally stable.

Bitcoin is creating an interesting point in the price trajectory because Bitcoin is likely to trade in a price zone with very little historical transaction activity. This can lead to rapid price action both up and down as the market tries to determine where Bitcoin should trade.

House Speaker and Treasury Secretary continue their negotiations on a new fiscal stimulus package

House of Representatives Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin continue talks on a new fiscal stimulus package. Conversations between Mnuchin and Pelosi on Tuesday continued their last-minute effort to come up with a deal ahead of the Nov. 3 election. Democrats and the Trump administration have struggled for months to overcome the discrepancies. Basic copper on additional stimulus measures – including dollar amounts – as the economy continues to feel the coronavirus pandemic burden.

At about 12:25 noon, the Dow Jones industrial average rose 0.2. At the beginning of the day, on average, 30 stocks traded higher than 100 points. The S&P 500 rose 0.3 percent along with the Nasdaq Composite. Snap shares led the tech market higher, up more than 30% on better-than-expected results last quarter. Facebook and Alphabet, the parent company of Google, followed Snap at higher levels, up 5.1% and 3%, respectively.

Pelosi and Mnuchin made good progress in negotiations on stimulus. However, they still have many ways to go before they reach an agreement. However, Alec Phillips notes that Goldman Sachs economist notes that the biggest problems remain unresolved, and a deal doesn’t seem particularly tight.

Phillips stated:

“With big differences and little time, it seems unlikely that Pelosi and Mnuchin will reach a deal before the election. More importantly, even if a deal in principle is announced in the coming days — this seems possible, but not likely — it looks improbable that it would pass before Election Day.”

David Bahnsen, chiến lược gia đầu tư tại The Bahnsen Group, cho biết:
“The back and forth political discussions on the stimulus deal and continued election uncertainty give us extra justification for short-term market uneasiness. Very few market actors actually doubt that some fiscal relief bill is coming. The question is purely when, and of what composition.”

You can see the Bitcoin price here.

Read more:

Join us on Telegram

Follow us on Twitter

Follow us on Facebook

You might also like

LATEST NEWS

LASTEST NEWS