Bitcoin is “at the start” of a broad bullish wave, and there are clearer and more obvious reasons to accept it.
That’s the opinion of Dan Heald, growth leader of the US cryptocurrency exchange Kraken, who listed the latest bullish evidence for Bitcoin (BTC) on August 24th.
Several commentators have argued that when it comes to raising prices Bitcoin is only just getting started. For the holder, the factors are bitcoin-specific and macro-related.
UTXOs for a profit near 98%
More than 97% of unspent Bitcoin transaction expenditures (UTXOs) – or portions of a transaction involving returning coins to the initiator – are profitable.
As Cointelegraph reported, this means that less than 3% of transactions are at a higher price than the recent high of $ 12,400. This usually occurs at the beginning of the ascent.
In other words, nearly 98% of all Bitcoins are now worth more than they were when someone took them, which means that long-term investors are better off at any other time in Bitcoin’s history.
Bitcoin has now stayed above $ 10,000 for the second longest period in its life, tied to July 2019.
Supplying the rest of the HODL spell
As noted by CasaHODL co-founder Jameson Loeb, the one-year active show has reached its lowest level since the start of 2011.
“People don’t want to give up their bitcoins,” he summed up.
Held was referring to 61% of total Bitcoin supply that has held steady for more than a year, which Cointelegraph had previously identified as a bullish signal – investors choose to hold it, rather than trading or selling.
Exchange rates that have also reached lows add to the theory.
Half in time
The factors mentioned above, which appeared in the months after Bitcoin’s third bloc support was halved, support the bullish argument.
Miners recovered from lost revenue, while demand remained particularly noticeable from corporate and institutional buyers.
At the same time, Bitcoin’s inflation has halved as a result of the decline, making frequent large-scale purchases an increasingly expensive business.
When MicroStrategy made Bitcoin its new reserve currency for government bonds, CEO Michael Saylor highlighted monetary policy as a major concern that distracted him from the fiat currency.
Held agreed, often citing the erratic printing of money by central banks as the main argument for the introduction of Bitcoin.
He said that this policy is in full swing now, and in the week that the Fed will come up with a plan to stimulate inflation.
Snowballs of Global Debt
After all, global debt as a percentage of GDP is higher now than it has been at any time outside of war.
This mountain of nearly unbridled debt – more than $ 255 trillion, even before the coronavirus – is showing no signs of slowing down.
This practice speaks in the classic Keynesian mantra of debt and its consequences for those who create it: “In the long run, we are all dead.”