The world’s largest cryptocurrency, Bitcoin (BTC), has managed to outperform major commodities like Crude Oil (WTI) and Gold (XAU) over the past 90 days, gaining over 15% in value. This surge happened amidst a significant sell-off in global bank shares, illustrating a potential shift in investor sentiment.
Bitcoin entered 2023 at an average price of $16,547 and, despite heavy selling pressure in global financial markets, succeeded in breaching the crucial $30k price level on April 15, 2023. Worth noting, the last time Bitcoin achieved this milestone was on June 9, 2023. In contrast, Crude Oil (WTI) prices declined by 4% during the same period, currently trading at an average of $70.30. Meanwhile, Gold (XAU) and Silver prices recorded an impressive 7.5% and 12.7% surge, respectively.
Glassnode data reveals that Bitcoin’s number of non-zero addresses reached an all-time high (ATH) of 47.24 million on May 30, 2023, indicating a growing interest in the world’s largest cryptocurrency. Concurrently, the number of addresses holding over 0.01 BTC also achieved an ATH of 12.02 million on the same day. BTC’s exchange deposits (7d MA) registered a 3-year low of 1.76 million, suggesting that investors might be preferring to hold BTC over other commodities.
However, recent data indicates a decline of over 5% in Bitcoin price over the past 30 days, hinting at a possible market correction. Low volatility and a narrow trading range also characterize the market, leaving experts to wonder when equilibrium might be disturbed.
On one hand, Bitcoin’s ability to surpass traditional commodities is a testament to its increasing popularity among investors as a store of value. Additionally, the ATH figures and 3-year low exchange deposit numbers could point to a “hodling” mentality, indicating that market participants believe in Bitcoin’s long-term potential.
On the other hand, the recent decline in Bitcoin price and potential market correction serve as a reminder that cryptocurrencies remain unpredictable and subject to market fluctuations. Investors must exercise caution and conduct thorough market research to make informed decisions.
As we continue to observe crypto markets, investors may take solace in the performance of Bitcoin compared to traditional commodities. While there are challenges and uncertainties ahead, many are hoping for continued growth and adoption as the blockchain future unfolds.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: Coingape
