Bitcoin (BTC) is “at the beginning” of a long bull run and there are more and more reasons to accept it.
That was the opinion of Dan hero, America’s Crypto Exchange Growth Chief, octopus, who listed the latest evidence of Bitcoin’s rise on August 24th.
Many commentators argue that when it comes to rising prices, bitcoin starts to rise. For Held, the factors are both Bitcoin-specific and macro-related.
UTXO’s earnings are 98%
More than 97% of unspent Bitcoin transactions (UTXOs) – or any portion of a transaction with coins returned to the initiator – are profitable.
As Cointelegraph reported, This means that less than 3% of transactions were made at a price above the recent high of $ 12,400. Typically this occurs at the beginning of bullish periods.
In other words, Almost 98% of all BTC is now worth more than it receivedThis means that long-term investors are better off than almost any other time in Bitcoin’s history.
Bitcoin has held over $ 10,000 for that second longest time of your life, bound with July 2019.
Bitcoin price periods around $ 10,000. Source: Twitter
HODL supply downtime
Meanwhile as a co-founder of HouseHODL, Jameson lop, The annual active supply has reached its lowest level since the beginning of 2011.
“People don’t want to get rid of their Bitcoin,” he summarized.
Diagram of the current supply speed and the active supply speed of Bitcoin. Source: Coin Metrics / Twitter
Held was referring to the fact that 61% of total BTC supply stayed static for over a year, something that Cointelegraph previously called bullish signal – Investors choose to hold, not trade or sell.
The fact that exchange rate balances are so low also adds to the theory.
A timely halving
The above factors, which emerged in the months after the Bitcoin-subsidized third block halved, add to the bullish argument.
Miners have recovered from the loss of revenue while demand, particularly from corporate and institutional buyers, has remained clear.
At the same time, Bitcoin’s inflation rate has fallen as a result of the halvingThis makes repeated bulk purchases an increasingly expensive business.
When he made Bitcoin his new reserve currency, he was the CEO of MicroStrategy, Michael Saylor, highlighted monetary policy as one of the main concerns that distracted him from the fiat currency.
Hero agrees often pointed to unpredictable money printing by central banks as the main argument for the introduction of Bitcoin.
These policies, he says, are “in full swing” now, the week the Federal Reserve intends to come up with a plan to stimulate inflation.
Increase in world debt
To the last, World debt’s share of GDP is now higher than at any time outside of wartime.
This almost rampant mountain of debt, which already exceeded $ 255 trillion before the coronavirus, shows no signs of slowing down.
The practice speaks of the classic Keynesian mantra about debt and its consequences for those who create it: “In the long run we will all be dead.”