• About
  • Advertise
  • Privacy & Policy
  • Contact
Cryptos Valuator
  • Home
  • Bitcoin
  • Blockchain
  • Cryptocurrency
  • Ethereum
  • Exchanges
No Result
View All Result
  • Home
  • Bitcoin
  • Blockchain
  • Cryptocurrency
  • Ethereum
  • Exchanges
No Result
View All Result
Cryptos Valuator
No Result
View All Result
Home Bitcoin News

3 Hints Why Bitcoin Might Be ‘Poised for Biggest Breakout Yet’

July 2, 2021
in Bitcoin News
0
3 Hints Why Bitcoin Might Be ‘Poised for Biggest Breakout Yet’
0
SHARES
2
VIEWS
Share on FacebookShare on Twitter

Bitcoin (BTC) has hit new 2020 highs, nearing the price of USD 14,000, and it’s “poised for takeoff,” according to crypto analytics firm Coin Metrics that gave three reasons why that might be the case.

In the past 24 hours, BTC had surpassed USD 13,800, or the level last seen in January 2018, before falling below USD 13,000 again and later rebounding to USD 13,116 (15:59 UTC). Though bitcoin volatility is not the least bit surprising, “something is different this time around,” argued the Coin Metrics team in the recent report. It added that,

“Ever since the March crypto crash, BTC has been growing in ways that we have not seen in previous bull runs. On-chain fundamentals hint that it could be poised for its biggest breakout yet.”

The firm gave 3 arguments to support this claim.

1. Correlation with gold/dollar and increased hodling

Following the crash of March 12, now known as Black Thursday, BTC’s usually low correlation with both gold and the US dollar – shifted. Since then, BTC’s correlation with gold has been near all-time highs, and it’s correlation with the USD has been at all-time lows, said the report.

Per on-chain data, BTC holding since March 12 has increased while price has risen, “signalling that BTC is increasingly being used as a store of value, similar to gold.” As of October 25, some 62.5% of the total BTC supply was held for at least 1 year, close to all-time highs.

BTC’s velocity – which measures the amount of times an average unit of supply has been transferred in the last year – is at its lowest levels since 2011, which suggests “BTC is trending towards being used as a store of value as opposed to a medium of exchange.”

2. ‘More holders than ever’

Continuing the above-mentioned argument, the report said that there “appear to be more holders than ever,” with the number of addresses that hold at least USD 100 worth of BTC hitting a new all-time high of 9.74m on October 22. This is a positive signal for BTC’s long-term adoption, said Coin Metrics.

Following the good old ‘not your keys, not your money’ saying, it seems that more holders want to custody their own coins, given that BTC supply is increasingly being moved off of centralized exchanges.

3. Decreasing BTC’s supply inflation

Supply issuance has been shrinking, especially when taken into account bitcoin’s halvings, the third of which happened just this May.

“Historically, BTC price has hit a local peak within 1.5 years of each previous halving,” said Coin Metrics. “With holding activity increasing and the halving less than six months in the rearview, all signs are signaling that BTC is poised for takeoff.”

Large investors-driven rally

Nic Carter, Coin Metrics co-founder, is quoted by Bloomberg as saying that “this rally seems to be more driven by allocators with larger balances getting involved, rather than a flurry of retail investors.”

This comes after PayPal‘s decision to include crypto in its offering, as well as Square‘s and MicroStrategy‘s investments in BTC.

Coin Metric’s weekly State of the Network report further added that bitcoin transaction fees exploded, increasing by 82.5%. “On October 22nd BTC’s average transaction fee shot up to [USD] 6.35, eclipsing ETH’s average fee of [USD] 1.69.” And while ethereum (ETH) average transaction fee was higher than BTC’s for most of September due to the decentralized finance (DeFi) boom, “the momentum has shifted back towards BTC.”

Meanwhile, Bitcoin bulls used the recent rally to share their optimism over bitcoin’s present and near future. Raoul Pal, CEO of Real Vision Group, for example, described the coin as “a supermassive black hole that is sucking in everything around it and destroying it,” including silver, gold, banks, bond, commodities, etc. “This narrative is only going to grow over the next 18 months,” said Pal.

Bitcoin’s performance is SO dominant and SO all-encompassing that it is going to suck in every single asset narrative dry and spit it out.

Never before in my career have I see a trade so dominant that holding any other assets makes almost no sense.

— Raoul Pal (@RaoulGMI) October 27, 2020

Meanwhile, others were expecting a correction before the rally continues.

Previous Post

Vitalik Buterin Not Sure ‘When ETH 2.0’ but Says Clients Can Launch it Alone

Next Post

Gemini Partners with TaxBit to Automate Crypto Tax Reports

Next Post
Gemini Partners with TaxBit to Automate Crypto Tax Reports

Gemini Partners with TaxBit to Automate Crypto Tax Reports

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Stay Connected test

  • 123 Followers
  • 23.8k Followers
  • 99 Subscribers
  • Trending
  • Comments
  • Latest
Venezuela Considers Proposal to Include Bitcoin in Central Bank Reserves

Venezuela Considers Proposal to Include Bitcoin in Central Bank Reserves

June 23, 2021
Newegg Expands Bitcoin Payment Option To 73 More Countries

Newegg Expands Bitcoin Payment Option To 73 More Countries

July 4, 2021
World of Ether Goes Live on Ethereum Mainnet, Soon Becoming Top Ranked Crypto Game

Enterprise Ethereum Alliance Opens Regional Office In South Korea

August 6, 2021
World of Ether Goes Live on Ethereum Mainnet, Soon Becoming Top Ranked Crypto Game

Black Friday Drags Crypto Market Down, Bitcoin & Ethereum Price Plunges

August 4, 2021
UPbit Audit Reveals That South Korea’s Cryptocurrency Exchange is Not Guilty

UPbit Audit Reveals That South Korea’s Cryptocurrency Exchange is Not Guilty

Goldman Sach’s Cryptocurrency Startup Circle Raises $110 Million Led By Bitmain Technologies

Goldman Sach’s Cryptocurrency Startup Circle Raises $110 Million Led By Bitmain Technologies

NASDAQ-Powered Crypto Exchange To Go Live in June 2018

NASDAQ-Powered Crypto Exchange To Go Live in June 2018

Why is ZCash Price Rising ? | Latest Crypto News

Why is ZCash Price Rising ? | Latest Crypto News

UK Treasury To Seek Input on Taxing DeFi

UK Treasury To Seek Input on Taxing DeFi

May 31, 2023
Bitfarms Hits All-Time High in Hashrate Amid Expansion into Argentina

Bitfarms Hits All-Time High in Hashrate Amid Expansion into Argentina

May 29, 2023
Circle Breaks Boundaries With New Cross-Chain USDC Protocol

Circle Breaks Boundaries With New Cross-Chain USDC Protocol

May 26, 2023
Terraform Labs Co-Founder Do Kwon Charged With Fraud After Arrest

10,000 Bitcoin shifted to Swiss Bank Triggers Do Kwon and TFL Probe by South Korean Prosecutors

May 24, 2023

Recent News

UK Treasury To Seek Input on Taxing DeFi

UK Treasury To Seek Input on Taxing DeFi

May 31, 2023
Bitfarms Hits All-Time High in Hashrate Amid Expansion into Argentina

Bitfarms Hits All-Time High in Hashrate Amid Expansion into Argentina

May 29, 2023
Circle Breaks Boundaries With New Cross-Chain USDC Protocol

Circle Breaks Boundaries With New Cross-Chain USDC Protocol

May 26, 2023
Terraform Labs Co-Founder Do Kwon Charged With Fraud After Arrest

10,000 Bitcoin shifted to Swiss Bank Triggers Do Kwon and TFL Probe by South Korean Prosecutors

May 24, 2023
Cryptos Valuator

Follow Us

Browse by Category

  • Altcoin News
  • Bitcoin
  • Bitcoin News
  • Blockchain
  • Blockchain News
  • Business
  • Coins
  • Cryptocurrency
  • Cryptonews Deals
  • DeFi News
  • Economy
  • Ethereum
  • Ethereum News
  • Events
  • Exchanges
  • General
  • ICOs
  • Industry Talk
  • Markets
  • News
  • NFT News
  • Opinion
  • Press Releases
  • Regulation
  • special site
  • Sponsored
  • World

Recent News

UK Treasury To Seek Input on Taxing DeFi

UK Treasury To Seek Input on Taxing DeFi

May 31, 2023
Bitfarms Hits All-Time High in Hashrate Amid Expansion into Argentina

Bitfarms Hits All-Time High in Hashrate Amid Expansion into Argentina

May 29, 2023
  • Terms & Conditions
  • Privacy Policy

© 2021 Cryptos Valuato

No Result
View All Result
  • Home
  • Bitcoin
  • Blockchain
  • Cryptocurrency
  • Ethereum
  • Exchanges

© 2021 Cryptos Valuato