Bitcoin (BTC) has broken into new all-time highs, with the asset last changing hands in the mid $67,000 range.
During the final hour of Monday UTC time, BTC pushed into uncharted prices, with bulls firmly taking control of the markets as price action retested Oct. 20’s previous high of roughly $67,000.
The milestone comes on a historic date for Bitcoin, with analysts noting that Bitcoin’s market capitalization pushed above $1 million for the first time on Nov. 8, 2010.
Crypto Twitter appears to be rejoicing over the new all-time high, with many onlookers seeming to read the price-high as restoring their faith in the stock-to-flow (S2F) model from the pseudonymous analyst PlanB — which has gained significant popularity due to its eerie accuracy in predicting monthly closing prices for BTC.
The model measures the outstanding reserves of a given asset divided by its rate of annual production. PlanB first published their S2F model in March 2019 in a bid to quantify, measure and predict the scarcity of Bitcoin, then estimating that Bitcoin would reach a market cap of $1 trillion after the May 2020 halving.
After rising above $66,000 today and reaching a market capitalization of more than $1.2 trillion, Bitcoin has surpassed the total market cap of both car manufacturer Tesla and social media giant Facebook.
According to data from AssetDash, Bitcoin (BTC) is now the sixth most valuable asset by market capitalization among major companies, behind Microsoft, Apple, Google's parent company Alphabet, Saudi Aramco, and Amazon. The crypto asset passed Tesla’s and Facebook’s market caps of $1.19 trillion and $975 billion, respectively, as its price hovers close to $66,000 and within striking distance of its all-time high of $67,000.
The recent price rise puts Bitcoin’s market cap within $600 billion of Amazon. Tesla CEO Elon Musk’s recent announcement that he planned to sell 10% of his Tesla holdings could have contributed to the BTC volatility over the weekend when the crypto asset rose more than 4% from $62,941 to $65,512 in less than two hours.
Bitcoin’s market cap was already worth more than the total value of many fiat currencies. In February, the crypto asset flippened the Russian ruble, likely in response to Tesla announcing it had purchased an aggregate of $1.5 billion in BTC. Bitcoin’s market cap also briefly flippened the Swiss franc in October.
Bitcoin (BTC) investors appear to be increasingly sitting on their hands in hopes of higher prices, with the share of Bitcoin’s supply that has remained inactive for the past three months spiking to a record high of 85%.
On-chain analytics provider Glassnode identified the milestone in its Monday “The Week On-Chain” report, concluding, “Investors are just not spending their coins.”
Addresses that have not moved their BTC in 12 months, dubbed “long-term holders” (LTH), are among those most actively stockpiling coins — with said addresses moving just 6,500 BTC daily.
The trend of accumulation does not appear to be slowing down, with the share of supply held on centralized exchanges also dropping to a record low of 12.9% as BTC is increasingly placed into secure storage.
Glassnode reports that more than 5,000 BTC (approximately $338.6 million) was withdrawn from centralized trading venues during last week. The report asserted:
“The market is likely still in the quiet accumulation phase, punctuated by low activity, large exchange outflows, and very modest strategic spending by experienced holders.”
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