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. The cryptocurrency grew at a rate that was beyond what we could see in previous growth phases, “analysts wrote.
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, Square. This reinforces the idea 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 price lows in the first cryptocurrency.
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.
