After the March market crash, the growth of fundamental bitcoin-related metrics allows for counting on the “largest take-off in human history”. These conclusions are found in a new Report by the analytical firm Coin Metrics.
“Bitcoin’s volatility is well-known and it has seen many price spikes throughout its history. This time, however, something has changed. “Analysts say that the cryptocurrency grew at a rate we didn’t see in previous growth phases.
Researchers are focusing on the changes in the correlation between the first cryptocurrency and gold and the US dollars. This was evident on March 12, when Bitcoin crashed with other markets as a result of panic caused by the COVID-19 epidemic. Coin Metrics points out that the parameter with gold is still close to records, but not as high as historic lows with the dollar.
It mentions recent bitcoin investments by companies like MicroStrategy as a reserve asset.Square. This reinforces the claim that the first cryptocurrency has become digital gold according to Coin Metrics.
Experts have noticed a growing trend in bitcoin’s long-term storage, which supports its reputation as a way to preserve capital at a level with gold.
The share of coins that have not moved for over a year was 62.5% on October 25, which is close to the absolute highs. Similar situations existed before, at the time of the formation price lows in the first cryptocurrency.
Coin Metrics show that coin turnover has fallen to its lowest level since 2011. This metric supports the hypothesis of bitcoin being perceived as a storehouse of capital and not as a medium for exchange.
Analysts believe that the number of addresses that have more than $100 in their wallets has surpassed a record (9.74 millions). This positive momentum is a sign of long-term adoption for the first cryptocurrency.
Researchers have also been paying attention to the continued outflow of bitcoin from central exchanges. This can partly be explained by the desire of users for long-term prospects to store their first cryptocurrency independently.
You may recall that the number of bitcoin addresses ranging from 1000 BTC to more has risen to an all-time high in recent days.
The Winklevoss brothers who founded the Gemini cryptocurrency exchange confirmed earlier their forecast that bitcoin would grow to $500,000 in value. They believe bitcoin provides the best long-term protection from inflation.