Bitcoin Hits New Record High, Surpasses Tesla’s Market Cap; Ether Tops $4800

In early Asian trading, Bitcoin just broke out from its October highs, surging up towards $68,000…

Source: Bloomberg

Bitcoin is now bigger than Tesla…

Source

Not to be outdone, Ethereum also jumped, rallying above $4800 for the first time ever, having traded in a very uniform up-trend channel for 6 weeks…

Today’s market saw gold also rallying and the dollar get dumped. Did Quarles’ resignation, giving Powell potentially four open spots to fill with the most dovish doves in dove-land help support the bid for alternative currencies today?

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As we detailed earlier, cryptocurrency’s combined market cap has tagged $3 trillion for the first time (roughly the size of the entire UK economy), as top altcoins push into all-time highs.

Source

Bitcoin is back above $66,000…

Source: Bloomberg

“Bitcoin feels like it’s gonna have a 7 in front of it soon,” Cameron Winklevoss said on Twitter early Monday.

“Bitcoin flirting with (an) all-time high. Time to go parabolic,” twin Tyler said on Twitter Monday morning.

Despite Bitcoin’s impressive price gains during the past two years, CoinTelegraph reports, BTC’s market dominance has fallen by 42.8% since tagging a top of 70.8% on Sep. 6, 2019.

While Bitcoin still beats out its closest rival by more than double in terms of market share with 40.5% or $1.22 trillion compared to Ether’s 18.6% or $560 billion, the combined capitalization of all other cryptocurrencies is 40.9% or $1.24 trillion — evidencing the increasing plurality of the digital asset sector.

And Ethereum has topped $4700, a new record high…

Source: Bloomberg

“The price of ether is increasing with help from the continuing burning reducing supply and anticipation for eths move to proof of stake in the new year moving ether to a far less energy-intensive system expected to reduce ethereum’s energy usage by 99%,” Freddie Evans, Sales Trader at UK based digital asset broker GlobalBlock said.

But while the media plays up the speculative narrative, UBS details that on-chain activity has been anything but frenzied. BTC transactions are dominated by hoarders: around 77% of coins is held by those who have only ever sold less than 25% of what they accumulated.

With old supply not moving and relatively little short-term interest, ‘liveliness’ is well off its peak. Implied vol is less depressed than it was when prices were last making new highs, indicating less euphoria…

…and options open interest has dropped off post October expiry accordingly. Moreover, skew is relatively undemanding at around par, in stark contrast to ETH, which has a pronounced topside bias, particularly in longer dates.

Relatively little was rolled into November, leaving December as the only contract with significant volume (100k, 120k and 200k strikes are dominant, page 6).

Which, as quant analysts Plan B has noted, crypto assets will see a hyperbolic surge early next year, where it will outperform all other assets.

#bitcoin long term momentum is rising fast pic.twitter.com/5Mp7nE6iVs

— PlanB (@100trillionUSD) November 7, 2021

“I guess we will be above $100,000, above $135,000 at the end of the year, and then we’ll continue to grow maybe towards to stock-to-flow X (S2FX) model target [at] $288,000 or even above. So I would not be surprised even to see in Q1 in Q2 next year prices of $300,000, $400,000 or $500,000,” says PlanB.

It’s not just bitcoin though, as Bernhard Rzymelka, global markets managing director at Goldman Sachs, anticipates Ether to have hit $8,000 by December 2021 if the token keeps tracking inflation expectations.

Will “Moonvember” start to live up to its name?