Crypto market makes fresh 2020 highs as election approaches
While Bitcoin is making its way through the stratosphere, the stock market is still firmly earthbound. The leading cryptocurrency briefly eclipsed $14K this week, outperforming traditional asset classes as lockdowns return across Europe and political tensions ratchet higher in the run up to the US election day.
This week’s surge tops off a fantastic month for Bitcoin, which made 22% gains in October as gold traded sideways and the S&P 500 dropped 2%.
In the news, events continue to show the mainstreaming of Bitcoin by big financial institutions. Singapore’s largest commercial bank, DBS, has launched a digital asset exchange for Bitcoin and three other top cryptocurrencies, and fully-licensed Swiss financial institution Gazprombank has been approved to offer Bitcoin services.
This Week’s Highlights
- Bitcoin Hits $14K on Twelfth Whitepaper Day
- Altcoins Fade as Bitcoin Asserts Dominance
- Spark Distribution Snapshot
Bitcoin Hits $14K on Twelfth Whitepaper Day
12 years after the Bitcoin whitepaper was released, prices hit $14K on some exchanges—pushing past the peak of 2019 to mark the highest prices seen since 2018.
This momentous occasion was marked by other adoption milestones, with Iran introducing new regulations asking miners to sell their Bitcoin to the central bank, and Microstrategy CEO Michael Saylor revealing that he personally owns 17,732 BTC, in addition to the 38,250 BTC held by his company.
Year-to-date, Bitcoin is now up almost 90%, with an increase of roughly 20% in the past two weeks.
Altcoins Fade as Bitcoin Asserts Dominance
Sell-offs like this often happen after major altcoin rallies like “DeFi Summer”, as traders consolidate profits by switching back to Bitcoin before another alt season arrives and money flows back into smaller cryptocurrencies.
This dynamic is reflected in Bitcoin dominance, which climbed in October as the leading cryptocurrency clawed back market share from the rise of altcoins during the summer.
Spark Distribution Snapshot
To support the evolution of the Ripple ecosystem, eToro is working with new blockchain network, Flare.
On December 12th, a snapshot will be taken of eToro XRP wallets to determine the distribution of Flare’s Spark token.
Traders on eToro and eToroX are eligible, and the distribution will happen in the first half of 2021, subject to Flare’s discretion. Read more on the eToro Ripple feed.
The Week Ahead
In a display of astonishing strength, Bitcoin finished October at the highest monthly close since January 2018—a level that also marked the top of the biggest rally of 2019.
Now as Bitcoin consolidates below this key juncture at $14K, a key catalyst is approaching. Global markets are eagerly awaiting US election night on Tuesday, which promises to bring significant volatility—with the potential for turbulence heightened by the possibility of a contested outcome.
If Bitcoin blows through $14K, the bull market is likely to enter full swing, and we could rapidly approach $20K. On the flipside, a strong rejection from this key resistance level is likely to significantly dent market sentiment.