Bitcoin closes in on $89k as equities and crypto rocket higher, gold and silver approach key support

NEW YORK (November 11) The market-wide rally across risk assets continued on Monday with stocks, Bitcoin and multiple cryptocurrencies setting fresh all-time highs while gold and silver completely erased their gains over the last month. 

At the closing bell, all the major North American equity indices were in the green, with the S&P 500 closing above 6,000 and the Dow over 44,000 for gains of 0.10% and 0.69%, respectively, while the Nasdaq finished up 0.06%.

Precious metals, on the other hand, continued to sell off, with both gold and silver setting new lows as equities and King Crypto rocketed higher. Spot gold continues to tick down toward support at $2,600 per ounce, setting a session low of $2,610.69 shortly after 1 p.m. EST. 

At the time of writing, spot gold trades at $2,622.35  for a decline of 2.31% on the session, while spot silver was down  fallen 1.76% and trades at $30.716 per ounce after hitting a low of $30.407 around 11 a.m. EST

Data provided by TradingView shows that after trading between $80,000 and $82,000 during the overnight session, the North American open once again provided the rocket fuel Bitcoin (BTC) was waiting for, as it shot from $81,680 at 9:30 a.m. to a fresh high of $82,620 just 11 minutes later, and set a new all-time high of $84,440 just after 10 a.m. EST. 

This proved to be just the beginning, however, as King Crypto went on to set a series of new ATHs in rapid succession, trading up to a new high just above $88,500 at 4:30 p.m. EST.

At the time of writing, BTC last traded at $88,189.72 for a staggering gain of 9.63% on the day.

BTC, stocks may be overextending

Mike McGlone, Senior Commodity Strategist at Bloomberg Intelligence, expects equities and Bitcoin to continue outperforming gold in the near term, but believes they may be pushing into overextended territory.

“Record highs for the US stock market and Bitcoin, on the back of the election of Donald Trump, may face the reality of extended markets and, as Benjamin Disraeli said, what we anticipate seldom occurs,” he wrote in an update on Monday morning. “Our graphic shows how low Bitcoin was vs. beta and gold with the S&P 500 hovering near its 100-week moving average when Trump was elected eight years ago. Now the stock index is stretched to a more-than 25% premium and the ratios of the crypto vs. the metal and S&P 500 seem to be trying to catch up, after peaking in 2021.”

“Will Bitcoin resume outperforming and rise to new highs vs. gold and beta or succumb to mean reversion? It's the human nature of positioning for what worked last time that might elevate back-and-fill risks,” he warned. “Bitcoin appears more likely to outperform gold, as long as the stock market keeps going up.”

McGlone noted that the Bitcoin-to-Beta correlation is high, while gold's is low. “Bitcoin's 60-day correlation to the S&P 500 at about 0.60 is the highest ever on the way up, and may suggest what's driving the crypto,” he said. “Juxtaposed is gold's connection to beta closer to zero as of Nov. 8, showing Bitcoin has been trading more like a leveraged version of beta than a digital version of gold. Our graphic depicts the propensity for Bitcoin in ounces of the metal to lead the stock market, and both put in highs in 2021, on the back of the biggest money pump in history. But at 28x, the Bitcoin/gold ratio is the same as first traded about three years ago, despite the record-setting S&P 500."

"Will the crypto catch up under a second Trump administration?" he asked. "The launches of futures in 2017 and US ETFs in 2024 were Bitcoin's migration into the mainstream milestones, and may signal its best performance days are in the past.”

McGlone believes that the increasing disparity between the surging U.S. stock market and the languishing Bitcoin/gold ratio means King Crypto’s days of big gains could be coming to an end. “Or is Bitcoin poised to catch up and renew its propensity to outperform the precious metal? Our graphic shows a top potential headwind for most risk assets: if beta backs up,” he wrote. “The ratio of the most widely 24/7-traded speculative risk asset vs. the store of value has acted as a leading indicator, and Bitcoin/gold at about the same as in 2021 is relatively low vs. the S&P 500.”

“Bitcoin-to-beta risks may be similar to copper, he added. “Both typically face headwinds when the stock market declines and correlations to the stock index are quite elevated. At about 3x vs. gold and the S&P 500, Bitcoin's high annual volatility may portend greater risks for the crypto if volatility rises.”

Altcoins sail the sea or green

It was another sea of green in the altcoin market on Monday as every category of token followed Bitcoin’s lead higher, and many posted double-digit gains. 

Cronos (CRO) saw the largest gain once again, increasing by 53%, while Based Brett (BRETT) rose 23.91%, and Dogecoin (DOGE) gained 23.7%. First Neiro (NEIRO) was the biggest loser, falling 8.95%, while Gigachad (GIGA) lost -5.79%, and Goatseus Maximus (GOAT) lost -5.20%. 

The overall cryptocurrency market cap now stands at $2.94T, an 8.11% increase over the last day, and Bitcoin’s dominance rate is 59.04%.

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