Bitcoin (BTC) has set a record for its longest daily streak above $10K. The digital asset broke above this significant psychological level at the beginning of September and has stayed above it for a consecutive 84 days during press time.
As per a market outlook report by Blockchain.com, the significance of $10k is driven in part by market psychology. In other words, more and more folks continue to embrace BTC and have mentally chosen to make the $10K level important.
A surge in the BTC network activity observed in the past few weeks also proves that more folks are interacting with the network.
Moreover, the number of active BTC addresses has now surpassed 981,000, as per data from on-chain analytics firm Glassnode. This impressive statistic indicates that the number of addresses has soared up from 684,000 at the beginning of 2020.
At publication time, Bitcoin is rising steadily after forming a support base above $11,300. The BTC price cleared the $11,400 resistance as the bulls gained momentum, driving the asset to its current price at $11,466.
BTCUSD chart by TradingView
Is the Bitcoin Steak above $10K Permanent?
The current BTC streak well eclipses the prior record of 62 days set in 2017, when BTC reached its all-time high price of $19K in Dec 2017. Analysts are now keen to see if BTC will manage to keep its current streak going.
The asset’s price movement is difficult to predict, as proven by a wrong projection from one analyst in May that BTC would never see 4-digit prices again. The BTC price defied this prediction and temporarily traded in the upper $9,000s before reclaiming the support above $10K.
That said, BTC must soon remain above $10k indefinitely to fully convince investors of its potential as a new, widely held global reserve asset.
As per the Blockchain.com report, on-chain indicators point to the asset showing strength in the near future. For instance, the BTC network has seen an increase in output volume. Europe remains the most active continent in the firm’s web wallet, while volume output in Africa has risen steadily.
Moreover, there is a growing interest in BTC from institutional investors as seen in the BTC treasuries currently held by publicly traded companies.
Bloomberg analyst Mike McGlone shared a similar bullish prediction for BTC in his company’s crypto outlook report for October. He pointed to the rising BTC hashrate, growing institutional investor interest, and failing global macroeconomics as potential key drivers for future price growth.
As per the Bloomberg report, the price of BTC will hit $100K by 2025 as adoption and demand for the scarce asset increase.
BTC shows Worrying Correlation To Stocks
In the past two months, BTC has displayed an uncanny correlation to stocks, prompting one Twitter user to comment that “bitcoin is no longer digital gold, now it’s digital S&P.”
According to Blockchain.com Chief Strategy Officer, Charles McGarraugh, uncorrelation with traditional stocks is a major selling point for why investors should include BTC in their portfolio.
McGarraugh predicts that the strong correlation observed this year between stocks and crypto should soon end as BTC matures as an inflation hedge.
He noted that BTC could regain its uncorrelation to stocks after additional confirmation of rising inflation in 2021, spurred on by the ongoing stimulus packages from the US Federal Reserve.