Bitcoin (BTC) is “at the beginning” of an extended bull run and there are increasingly clear reasons to accept it.
That was the opinion of Dan Held, head of growth at cryptocurrency exchange of the United States Kraken, which reported the latest evidence for bullish Bitcoin on August 24.
Many commentators have argued that Bitcoin is just at the beginning when it comes to price increases. For Hero, the contributing factors are both Bitcoin-specific and macro-related.
In-profit UTXOs close to 98%
More than 97% of Bitcoin Unpent Transaction Outputs (UTXOs) – as parts of a transaction involving coins returned to the initiator – are in profit.
As Cointelegraph reported, this means that less than 3% of the transactions occurred at a higher price than the recent high of $ 12,400. Typically, this occurs at the beginning of Bullish periods.
Put another way, almost 98% of all BTC is now worth more than anyone received it, which means that investors are better off in the long run than almost any time in the history of Bitcoin.
Bitcoin has now remained above $ 10,000 for the second-longest period in his lifespan, tied for July 2019.
Period of Bitcoin price is about $ 10,000. Source: Twitter
Dormancy of supplies speaks HODL
Meanwhile, as indicated by co-founder of CasaHODL, Jameson Lopp, one year of active supply reached its lowest point since the early days of 2011.
“People do not want to share their bitcoin,” he said.
Bitcoin current offer rate and active offer rate graph. Source: Coinmetrics / Twitter
Held referred to 61% of BTC’s total supply remaining stationary for more than a year, something that Cointelegraph previously identified as a Bullish signal – investors choose to keep, and not trade or sell.
Balance shift, as well as low, contributes to theory.
A temporary halving
The above factors that occur in the months after halving Bitcoin’s third block subsidy advance the bullish argument.
Miners have recovered from the loss of revenue while demand has remained stagnant, especially from business and institutional buyers.
At the same time, the inflation rate of Bitcoin has fallen as a result of the halving, making repeated large-scale purchases an increasingly expensive business.
Inflation continues
When Bitcoin created its new treasury reserve currency, MicroStrategy CEO Michael Saylor highlighted monetary policy as a major concern that kept him away from fiat currency.
Hero agrees, often pointing to the unjustified money pressure by central banks as a major argument in favor of adopting Bitcoin.
This policy, he says, is now in “overdrive”, in the week that the Federal Reserve is tipped to reveal a plan to increase inflation.
World-famous snowballs
Finally, global debt as a percentage of GDP is now higher than at any point outside wartime.
This almost unparalleled debt mountain – in excess of $ 255 trillion even for coronavirus – shows no signs of slowing down.
The practice speaks to the classic Keynesian mantra regarding guilt and its consequences for those who create it: “In the long run, we are all dead.”
