Analysts from the trading company QCP Capital stated that the Bitcoin rate could reach $97,000 if at least 1% of the capital invested in gold is redirected to the first cryptocurrency.
QCP Capital noted that since the end of the US presidential election, Bitcoin has gained 30% in value, while gold has lost 5%. This reflects the shift of institutional investors’ capital towards digital assets, analysts believe.
“Bitcoin’s market capitalization has reached $1.73 trillion and was able to exceed silver’s figures at the moment, but is still significantly inferior to gold with its capitalization of $17.5 trillion. However, the redistribution of even 1% of capital from gold to bitcoin is capable of raising the rate of the first cryptocurrency to $97,000,” the experts said.
QCP Capital analysts drew attention to the basis indicator, which reached 18% on November contracts – the indicator represents the difference between futures prices and spot market prices. The high basis value indicates that traders are willing to pay a significant premium for the opportunity to open long positions through futures – which reflects strong bullish sentiment in the market, the experts noted.
At the same time, historical analysis shows that periods of high basis values are short-term and can provoke a correction in the value of bitcoin, according to QCP Capital.
Earlier, Bernstein representatives indicated that investors who have avoided investing in cryptocurrency should “transform their mental model” and pay special attention to digital assets.
