A new report from crypto fund manager Grayscale Investments argues this The current structure of the Bitcoin market (BTC) “corresponds to that of the beginning of 2016, before the historic upward trend began”..
Grayscale predict that The demand for Bitcoin will increase significantly as inflation increases, underscoring the need for a scarce money productIncreasing the use of cryptocurrency.
The report identifies several on-chain indicators that show a growing interest in cryptocurrencyGiven a surge in long-term involvement in short-term speculation amid record lows in the number of Bitcoin held on exchanges.
Grasycale indicates that too The daily active addresses are at their highest level since 2017.
The report states that The easing of monetary policy following the US abandonment of the gold standard has led to cycles of asset bubbles, followed by aggressive quantitative easing.
Grayscale indicates the American economy’s growing reliance on quantitative easing (money pressure) to stay afloat, and history shows that giving up is difficult. The SP fell 20% in three months in response to the Federal Reserve’s float plans to reverse its monetary expansion in 2018.
Although the US dollar “remains structurally strong relative to other currencies,” the report said Investors wary of inflation in the face of “unprecedented monetary and fiscal stimuli” are looking for ways to hedge against the ever-growing money supplyThis reinforces the case for Bitcoin as a store of value.
Grayscale cites the rating system that hedge fund manager Paul Tudor Jones uses to rate the properties of Bitcoin against cash, gold and financial assets and determine the growth potential of the market.
“What surprised me was […] for Bitcoin as high as it scored. Bitcoin had a global value of nearly 60% of the financiers’ value, but a market cap of 1/1200 of that. It has 66% gold as a store of value, but it has a market cap equal to the 60th value of gold. “
“Something seems to be wrong here, and I suspect it’s the price of Bitcoin.”Jones closed.