First Mover: Bitcoin Needs No Vaccine as Druckenmiller Lays Down 'Better Bet'

"Should bitcoin prices consolidate this week," wrote Matt Blom, head of sales and trading for the digital-asset firm Diginex, "It would set us up for the next leg up towards $17,000."

The investing legend Stanley Druckenmiller told CNBC on Monday that he owned "Many, many more times gold than I own bitcoin, but frankly if the gold bet works, the bitcoin bet will probably work better."

Of course the 11-year-old bitcoin has defied market prognosticators for most of its history, and some cryptocurrency traders say the daily price movements represent little more than a statistical random walk, or maybe correlation without causation.

Bitcoin has blown away every other major asset class in 2020, with a 113% year-to-date gain versus 10% for stocks and 24% for gold.

Bitcoin's price correlation over the past 90 days with both stocks and gold stands at a positive but weak level of 0.35, where 1 represents perfect synchronicity, -1 a perfectly inverse relationship, and 0 no connection at all.

It might also be weak to draw too many inferences beyond just that the bitcoin bet appears to be winning.

Bitcoin has chalked up a stellar price rally in the past two months, reaching 33-month highs close to $16,000.

That's a 63% price gain in eight weeks, according to CoinDesk's Bitcoin Price Index.

Supply crunch: "Between Grayscale's GBTC trust, MicroStrategy and the influx of other large spot buyers, the supply of bitcoin is beginning to look more scarce," Dibb said.

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