BTC $1.35 trillion milestone fuels wealth distribution debate
BTC $1.35 trillion milestone fuels wealth distribution debate
Bitcoin continues its impressive climb, now trading at $68,500, edging closer to its all-time high near $74,000. This marks a 31% gain since September and 17% in October alone.
What’s driving this?
Strong support: Bitcoin is finding a bullish cushion from its 20- and 100-week EMA, pointing to more upside potential but the current price is meeting resistance from a bearish trendline, and RSI readings show it’s entering overbought territory.So, while the technicals suggest momentum remains strong, traders should keep an eye on these hurdles.
Broader market dynamics reveals Bitcoin’s market cap at $1.35 trillion, now over $1 trillion larger than Ethereum's. This gap is notable, with some analysts arguing Bitcoin has room to run, while others, like Glassnode’s James Check, suggest that Ethereum might not make the "glorious comeback" some expect.
But what does this mean for wealth distribution?
Bitcoin’s wealth distribution has become a point of contention. According to ECB analysts Bindseil and Schaaf, Bitcoin's price growth disproportionately enriches early adopters. And it’s not just a relative comparison: even those without Bitcoin are affected. Rising Bitcoin prices erode purchasing power for non-holders, redistributing wealth in a way that risks deepening societal inequality.
The ECB report makes an important point: Bitcoin’s transformation from a decentralized payment system to a speculative asset creates a “zero-sum” dynamic. Wealth is not being generated by productive economic activity but by pure speculation.
Bitcoin maximalist long-term outlook
Some, like Fred Krueger, believe Bitcoin could reach a $100 trillion market cap by 2040, putting its price at $5 million. Another by the name, Kyle Chasse, argues that institutional backing will fuel future gains, with BlackRock’s Larry Fink comparing Bitcoin to the "early days of the mortgage market."
But whether Bitcoin reaches these heights or not, one thing is clear: the broader impacts of this speculative growth are worth watching.
Bitcoin's recent rally has captured the attention of investors. This is a result of a potential US election win by pro-crypto Republican candidate Donald Trump.
