Bitcoin broke the $ 14,000 mark, and October was one of the strongest months for BTC, and the market is now pricing.
While the US presidential election has not yet been able to present a final result, the Bitcoin course creates facts. After timidly failing at the $ 14,000 mark and only being able to achieve it for a short time in the past few days but not hold it, BTC broke through this crucial resistance last night.
Now the all-time high from 2019 is over. Because until yesterday, skeptics kept standing out from the market watchers. After all, there was a latent risk that Bitcoin would fail at the same resistance zone as last year.
But the hour is just over 14,400 US dollars, which shows the cops are very self-confident. In the media landscape, meanwhile, it is predominantly discussed that investors prefer to bet on Bitcoin due to the uncertain outcome of the US election. A questionable thesis, because all indicators were already bullish in the run-up to the election and it is more likely that the rally will still be spurred on by the advance of PayPal.
Because the global rollout is still pending and customers in the USA are still waiting for access. So if there is an end-user rush to Bitcoin, then it is still ahead. It can therefore be assumed that many investors are currently stocking up because they are anticipating this rush.
Altcoins and tokens are bleeding out
Meanwhile, the good news for Bitcoin is all the worse for all other cryptocurrencies. After all, the market reacts with an all-too-well-known dynamic. With every additional boost that the Bitcoin course gets, altcoins and tokens lose value. It is worth paying attention to the direct exchange rate to Bitcoin.
Because even if the exchange rate in US dollars remains stable, the other cryptos don’t perform better than BTC. The result is a downward spiral as most investors are selling off their altcoins and tokens for Bitcoin. It is difficult to predict when the point will ultimately be reached where absolute surrender has taken place and no further sales will take place.
The first bargain hunters are already on the prowl and buy carefully. For the time being, only short-term rebounds can be expected. When and if the market will ever see strong rallies in this sector again remains open. If the previous market cycles occur again, an “old season” could be expected in May 2021.
But if you are skeptical about the alternatives to Bitcoin, it should be noted that Altcoins could just as easily become extinct. After all, the market has had enough negative experience with it. And if BTC should actually be traded above $ 20,000, the question arises why investors should get an appetite for cryptos that nobody knows and uses.
In the end, that question could be answered simply by human greed. Because a new edition of the fabulous rallies from previous years could be an incentive for many investors.