What needs to happen before bitcoin enters price discovery mode
Bitcoin has set new price records, reaching $89,864, a 15% increase over its previous all-time high of $77,975 from November 2021. Although it pulled back to under $87,600, it remains up 27% in the past week. The current cycle, which began in November 2022, shows a 580% increase, aligning closely with past bull markets. Notably, Bitcoin’s market cap peaked at over $1.72 trillion, marking the largest intraday spike on record with an increase of $181.55 billion. However, before entering price discovery mode, Bitcoin needs to surpass its stock market ratio compared to the S&P 500 and Nasdaq 100, which are still below their late 2021 records. Currently, the BTC/SPX ratio stands at 14.99, below the 15.34 peak and the BTC/NDX ratio at 4.26, which is 11% under the earlier high. This reflects the broader market dynamics leading up to this current surge in Bitcoin's value.
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