On November 19, 2024, Bitcoin recorded a new all-time high, reaching $93,970.91. This peak occurred amidst a booming crypto market, reflecting the asset's resilience and appeal.
A Record that Redefines Market Standards
Bitcoin reached a new milestone at $93,970.91 before falling to $92,113, surpassing its previous record by nearly $500 set a week earlier. This represents a 3% increase in just 24 hours, consolidating its position as a benchmark asset in the crypto world. The rise is followed by increased interest in spot Bitcoin ETFs, like BlackRock's iShares Bitcoin Trust, which recorded $446 million in volume on its first option trading day. Eric Balchunas, a senior analyst at Bloomberg, stated, 'This initial volume is significant and reflects massive interest in these new financial products.'
Growing Divergences Within the Crypto Market
While Bitcoin reached new heights, Ethereum showed stagnant performance, stabilizing around $3,128.78 with a weekly decline of 5%. This underperformance highlights historical divergence between the two assets. According to Ki Young Ju, CEO of CryptoQuant, 'every asset is now following its own trajectory.' He also noted that the correlation between Bitcoin and Ethereum has hit a three-year low, with a coefficient of only 0.3. Dogecoin, however, exhibited a staggering progression, surging 10.7% in one day to reach $0.42. These movements indicate a growing fragmentation of crypto trajectories, reflecting varied investor behaviors and distinct fundamentals.
Significance of the Record and Future Prospects
The Bitcoin record highlights the central role of financial innovations, such as spot ETFs, in attracting interest in cryptocurrencies. However, the increasing divergence among Bitcoin, Ethereum, and other altcoins raises questions about the future of historical correlation, long uniting these assets. This situation could signal a new maturation phase for the market, where each asset distinguishes itself by its own fundamentals.
Bitcoin's new record underscores the significance of innovations in the financial world and the growing independence of cryptocurrencies. Divergent growth trajectories emphasize the importance of individual fundamental factors, potentially indicating a shift in market structure.
