Bitcoin, the leading cryptocurrency, has been growing in popularity over the years and provides a high return on investments as it is the first cryptocurrency in the market. Many experts on the price fluctuations that occur in bitcoin make inferences by making various analyzes that show that bitcoin is still in an upward cycle.
According to research, the proportion of bitcoin users who have not touched their virtual wallet for at least a year or more is in line with the inactivity in 2016. Although the Bitcoin price has experienced periods of activity over the past year, more than 61 percent of the supply is sitting still. In the last year, the inactive amount reached 56 percent in the rise to $ 14,000. This is being pointed to new record highs by some experts, and investors continue to be hopeful in light of this information.
Analysts point out that a new bull run is on the way in the developments in bitcoin, considering the pandemic and economic recession processes in the world. The current data coincides with the period when bitcoin rose to $ 20,000, and according to this data, most of those who accumulate bitcoin expect an upward trend as in 2017, when it reached its all-time high of $ 20,000. Recent data reveals that the number of bitcoin HODL
, which is considered to be a long-term BTC investor class, has increased more than in previous periods. The average Coin Days Destroyed indicator continues to decline and is at its lowest level since 2016. This reveals the presence of longer-term BTC holders in the market. Also, given that the bitcoin network’s hash rate has returned to halving levels, signals from the moving averages of this hash rate have been seen to result in a buy signal. This development is quite significant as it marks the rise historically before the bull rallies.
Meanwhile, the trade war between the US and China remains a potential indecision trigger on investors. At this point, the trade wars, which are a result of the developments between these two countries, have created an opportunity and rise for bitcoin. Chinese demand to buy bitcoin has been found to rise at a time of heightened tensions between the two countries. Citizens seem to have preferred bitcoin as a safe haven amid growth uncertainty in the world’s two largest economies. Looking at the United States, the huge amount of US dollars printed by the Fed as part of recent quantitative easing initiatives has led to the perception of bitcoin as an alternative currency. Expectations are that the demand for bitcoin will increase as the US Dollar depreciates against other currencies. In Zimbabwe, an African country, the trend towards bitcoin and other major cryptocurrencies is also on the rise with the collapse of the currency.
Based on all these things , popular analysts predict a bullish scenario for bitcoin, stating that the current situation is not bad for bitcoin holders. If history repeats itself, this metric could be an extremely positive sign for cryptocurrency.
