Here’s How High The Bitcoin Price Would Be If It Catches Up With The Stock Market

The US stock market has just achieved a historic milestone, closing at its highest weekly levels ever ￰0￱ S&P 500 finished the week at 6,791.68 while the US 100 Index reached 25,358.15, both setting new all-time ￰1￱ inflation data, strong corporate earnings, and expectations of Federal Reserve rate cuts have all combined to keep investor sentiment ￰2￱ this record-setting environment, crypto analyst Ash Crypto posted an observation on X that asks the question of how high Bitcoin would trade when it finally catches up to the US stock ￰3￱ Stock Market’s Record-Breaking Momentum The S&P 500’s record-breaking climb represents a continuation of the stock market’s steady ascent through the second half of the year, which has been boosted by the Fed rate cut in September, expectations of further rate cuts, and confidence in corporate ￰4￱ Reading: Analyst Says Understanding This Bitcoin Structure Is Like Having A Superpower The tech-heavy US 100 Index led the charge, climbing past 25,000 for the first time ever this week as large-cap technology stocks posted strong quarterly ￰5￱ trend means that the long-running bull trend in traditional markets is intact.

However, what is really compelling is the contrast between Wall Street’s all-time highs and Bitcoin’s relative ￰6￱ starting October in a breakout move to new all-time highs above $126,000, the leading cryptocurrency went on a flash crash that took many traders by ￰7￱ the time of writing, Bitcoin is consolidating around $111,000 despite other asset classes showing ￰8￱ Crypto’s post argues that Bitcoin’s price is being artificially held back compared to how stocks have responded to the same macro ￰9￱ Bitcoin had followed the percentage gains of the S&P 500 or US 100 Index, it could already be trading between $140,000 and $150,000. When Bitcoin Finally Catches Up The first surge of liquidity always appears in the stock market whenever the Fed begins to slow quantitative tightening (QT) or hints at loosening ￰10￱ is because the stock market is where the deepest capital pools and institutional participation ￰11￱ react first because that’s where the credit channels are most ￰12￱ Reading: Bitcoin Supply In Profit Sees Sharp Decline With Market Crash – Here Are The Numbers Bitcoin is still positioned outside the traditional financial system, and hence, tends to lag this initial ￰13￱ once the excess liquidity starts spilling into other assets, Bitcoin’s price has always increased at a much faster pace than ￰14￱ to Ash Crypto, Bitcoin will catch up soon and hit at least $130,000.

Notably, Bitcoin’s on-chain data is already showing signs of the impending ￰15￱ instance, recent figures show that available sell-side liquidity (the total amount of Bitcoin sitting on exchanges ready to be sold) has dropped to just 3.12 million BTC, its lowest point in seven years. Furthermore, data shows that long-term investors have bought 373,700 BTC in the past 30 ￰16￱ the time of writing, Bitcoin is trading at $111,600. Featured image from Pixabay, chart from ￰17￱