Although the current price of Bitcoin is below USD 12,000, there are signals on the market of this cryptocurrency, indicating that it is the initial phase of the BTC raid. Here they are!
Most of the BTC coins are in the profit phase
Bitcoin is above the $ 10,000 mark for the second time in history over such a long time span. This means that nearly 97% of BTC coins have a value greater than when investors bought them.
This factor was noted, for example, by Dan Held (from the Kraken cryptocurrency exchange). In his opinion, the most popular cryptocurrency is currently at the beginning of a bull market. He shared his thoughts on this subject on Twitter.
Investors don't want to sell their Bitcoins
Except for a few cases and speculators, other long-term investors are not interested in selling their BTC coins. As it turns out, the annual activity of Bitcoin supply was at the lowest level since the beginning of 2011.
This factor was mentioned, for example, by the co-founder of the Casa cryptocurrency platform - Jemeson Lopp. He wrote that people simply do not want to part with their Bitcoins (this relationship can be seen in the chart above).
Big institutions are interested in BTC
Demand for Bitcoin from institutional investors remains quite clear. The research published by Fidelity Investments at the beginning of June. shows that about 1/3 of them have BTC or other cryptocurrencies.
The high demand for Bitcoin purchases by large companies arose mainly after the pandemic and the global economic slowdown. This asset has come to be seen as one of the alternatives that transfer value.
Despite the fact that the US dollar is quite strong against the fiat currencies of other countries, many entrepreneurs and investors still fear inflation in the face of unprecedented fiscal and monetary stimuli.
Significant in all this is that the demand for Bitcoin itself is increasing, while the amount of newly mined BTC coins is much smaller than before halving. This, in turn, may positively affect the price of this cryptocurrency.
Global debt is increasing
It is worth noting that by the end of 2019, the amount of global debt exceeded $ 255 trillion. This phenomenon shows no signs of slowing down, and the consequences that will follow are only a matter of time.
This is where people can begin to see the fundamental foundations of Bitcoin. Many people have already changed their minds about this cryptocurrency.