Bitcoin keeps the foundation for growth – Bloomberg

CONTENT

  • Bitcoin managed to maintain a bullish trend thanks to the growth of network indicators, according to Bloomberg

  • Cryptocurrency is now taken seriously as an asset for diversifying an investment portfolio

  • Growth in 2020 is significantly different in terms of its technical indicators from the bubble of 2017, analysts believe

International consortium of news organizations developing transparency standards.

The largest cryptocurrency by market capitalization was able to maintain the fundamentals for further growth, even taking into account the local fall

Despite the sharp drop in price on November 26, Bitcoin still has fundamental potential for further growth. At least Bloomberg came to this conclusion after analyzing the technical characteristics of the cryptocurrency market..

“While trading doesn’t always go smoothly, the $ 315 billion [market cap] digital coin is much more resilient and more liquid than during the last boom in 2017,” the newspaper writes..

Join our telegram channel to keep abreast of the main trends in the crypto market.

Tancredi Cordero, founder of investment firm Kuros Associates, believes the turning point in bitcoin price history will be widespread trust, widespread adoption and regulation..

Bitcoin growth postulates

Bloomberg Reveals Five Key Metrics Explaining Bitcoin Bullish Trend In 2020.

1. Network effect
2020 was marked by a year of growth in the number of Bitcoin users, despite constant economic turmoil. This, according to Bloomberg, provides an advantage that traditional financial assets are difficult to beat..

Source: bloomberg.com

According to data from ByteTree.com and Glassnode, there are currently over 30 million active wallet addresses.

2. Market depth
The rapidly growing bitcoin futures market at CME Group is another example of the convergence of cryptocurrency trading and traditional finance, Bloomberg analysts write. So, since the beginning of the year, open interest in cryptocurrency has tripled, which made it easier for investors to trade in the market..

Learn how to trade in the cryptocurrency market with BeInCrypto partner – cryptocurrency exchange StormGain

With $30,000 in Sight, What’s Next for Bitcoin?

Source: bloomberg.com

The cumulative number of outstanding contracts on CME is about three times the average for 2019. One futures covers five bitcoins.

Three Reasons Ethereum Is Growing As Fast As Bitcoin

3. Accelerated transactions

Bank of Canada Calls Crypto Boom ‘Speculative Mania’

In 2017, at its all-time high, Bitcoin faced massive transaction processing latency. The problem has been largely resolved by changing the software and merging transactions. According to Blockchain.com, the average mempool time has dropped significantly from the levels observed at the end of 2017..

Source: bloomberg.com

Mati Greenspan, chief executive of the consulting firm Quantum Economics, notes that the last time Bitcoin was at the top, the blockchain was close to collapse. However, the network has seen significant improvements since then, he notes..

Bitcoin keeps the foundation for growth - Bloomberg

4. Alternative asset
Traditional investors are now forced to re-structure their investment portfolios due to the large number of bonds offering low returns.

Source: bloomberg.com

An October report from Fidelity Investments said bitcoin’s low correlation with legacy assets is an “encouraging first sign” that the asset can be used as a portfolio diversifier. For the most part, Bitcoin hardly correlates with any of the major assets..

5. Network hashrate
Bitcoin blockchain computing power (hashrate) has skyrocketed over the past two years.

Source: bloomberg.com

Bitcoin hashrate has grown exponentially in 2020, reflecting increased investment in maintaining network security and speeding up transactions to be written to blockchain blocks..

The price of BTC / USDT at the time of writing is $ 16,895.

Where the price of cryptocurrency will move next – read in a special material from BeInCrypto.

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Bitcoin keeps the foundation for growth - Bloomberg
Bitcoin keeps the foundation for growth - Bloomberg
Bitcoin keeps the foundation for growth - Bloomberg

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