Bitcoin hits record $75,410, outpaces US stocks

The Essentials at a Glance

• Bitcoin (BTC) reaches a new all-time high of USD 75,410 during the US election.
• BTC outperforms US stock markets over the last five trading days with a 6% increase.
• Analysts expect further price increases but warn of potential profit-taking by large investors (whales).

Bitcoin Outperforms the Stock Market

During the US elections, Bitcoin (BTC) reached a new all-time high of USD 75,410 on the Coinbase exchange. Despite slight profit-taking, the price remains just below this peak at around USD 73,800. Compared to US stock markets, such as the S&P 500 Index and the tech-focused Nasdaq, Bitcoin performed significantly better. Over the last five trading days, BTC rose by 6%, while the S&P 500 and Nasdaq each gained only 1%.

Year-to-Date Performance: Bitcoin Dominates

Looking at the year-to-date (YTD) performance, Bitcoin has gained 67%, while the S&P 500 has only achieved 22%. This means that BTC has outperformed US stock markets by a factor of three. This trend could be attributed to election-related uncertainty and increased demand for alternative investments like cryptocurrencies.

Post-Election Outlook: Further Gains Possible

Historically, Bitcoin has often shown positive price performance following US elections. Analysts like Stockmoney Lizards believe that the current price rise could be just the beginning. They predict that BTC could continue to rise in the coming weeks, with a price target of USD 100,000 within reach. However, some experts also warn of short-term volatility.

Caution: Profit-Taking by Whales

Despite the optimistic forecasts, there are also cautionary voices. Ki Young Ju, the founder of CryptoQuant, expects that BTC could rise by up to 40% in the near future, but not to the extent seen in previous cycles. He points out that long-term investors who held through the bear market may start taking profits. This assumption is supported by data from Glassnode, showing that the number of whale entities (investors holding over 1,000 BTC) has dropped from 1,690 to 1,658 over the past two weeks.

Our Assessment

Bitcoin has posted impressive gains in recent days, significantly outperforming US stock markets. Current developments suggest that the price could continue to rise, especially if post-election uncertainty persists. However, investors should also keep an eye on the possibility of profit-taking by large investors. A cautious strategy might involve realizing profits gradually rather than speculating on another massive price surge.