Bitcoin Surges Past $90,000, Why Are Investors Not Rushing to Sell?

Bitcoin Surges Past $90,000, Why Are Investors Not Rushing to Sell?Bitcoin has experienced a strong rally since October 12th, breaking through the $90,000 mark for the first time on Wednesday during US trading hours. This marks a year-to-date increase of over 110%

Bitcoin Surges Past $90,000, Why Are Investors Not Rushing to Sell?

Bitcoin has experienced a strong rally since October 12th, breaking through the $90,000 mark for the first time on Wednesday during US trading hours. This marks a year-to-date increase of over 110%. Despite Bitcoin's stellar performance and the substantial gains accumulated so far, traders and investors haven't displayed a strong desire to take profits, a departure from past behavior observed at historical highs. This current situation leads many to believe that traders are confident in the cryptocurrency's continued appreciation in the coming days or months.

According to data from crypto analytics firm Glassnode, traders haven't entirely refrained from profiting from Bitcoin; in fact, they have realized considerable gains. However, Glassnode reports that these profits "remain below historical peaks." Consequently, the analytics firm believes Bitcoin still has room to rise further before reaching a potential point of demand exhaustion.

As evidenced by Glassnode's data, since Bitcoin surpassed its previous all-time high of $73,679 on November 5th, the "realized profit volume" has averaged approximately $1.56 billion per day. This stands in stark contrast to the profit-taking observed during Bitcoin's all-time high in March, which approached $3 billion per day.

Industry experts offer their interpretations of the current profit-taking levels, suggesting it signifies a lack of concern among traders regarding Bitcoin's future. For instance, Corey Klippsten, CEO of SwanBitcoin, describes Bitcoin's recent performance as "impressive." His viewpoint hinges on the fact that Bitcoin has remained stable despite experiencing a substantial surge "during a weekend with low trading volume."

Similarly, several prominent traders within the industry believe Bitcoin has further upside potential. Robert Kiyosaki, author of Rich Dad Poor Dad and a Bitcoin advocate, has announced his intention to continue purchasing Bitcoin until its price surpasses $100,000. Chris from WealthSquad also characterizes Bitcoin's current price as "still cheap." He subsequently predicts that once Bitcoin's market capitalization exceeds that of gold, reaching approximately $500,000, investors will recognize it as a unique buying opportunity.

It's worth noting that Bitcoin's current upward momentum coincides with growing anxieties surrounding US Treasury bonds. Recently, US Treasury bonds have increased by $850 billion. Entrepreneur Anthony Pompliano captured the impact of this development in a Wednesday post, commenting that "it's a race between Treasury yields and the price of Bitcoin."

In conclusion, even though Bitcoin has scaled to the $90,000 mark, investors seem hesitant to take profits. Glassnode's data indicates that traders have indeed realized sizable profits from Bitcoin, but there's still room for improvement compared to historical peaks. Industry experts maintain an optimistic stance regarding the current profit-taking levels, perceiving it as a reflection of market confidence in Bitcoin's future appreciation. Simultaneously, the pressure faced by US Treasury Bonds provides a potential driving force for Bitcoin's ongoing ascent.