The diminishing supply, increasing demand, and a favorable macroeconomic backdrop sustain a favorable view of Bitcoin’s price outlook with most analytics seeing the largest crypto by market cap crossing the $10,000 mark before the 2020 bitcoin halving.
As the price of bitcoin continues to increase, hodlers are still accumulating as we approach the halving and bitcoin becomes more popular as a safe haven asset.
Hodlers are accumulating, indicating underlying confidence in the price of bitcoin and its prospects.
In just a few days, the supply of bitcoin will be cut in half which will continue to transition the largest crypto by market cap toward a gold-like store of value and away from a risk asset. With every central bank aggressively adding liquidity into the economy, the restricted supply of bitcoin leaves, and only means, adoption is the key metric that matters moving forward.
In an unprecedented year due to the coronavirus, gold and bitcoin are likely going to sustain the upper hand on the back of unparalleled central-bank monetary stimulus, according to many reputable financial analysts.
Bitcoin sustaining above $8,000 is a sign of increasing momentum and detachment from the stock market beta-pull.
According to Glassnodes Insights, on-chain fundamentals have seen increases across the board for the second week in a row. The number of transactions, number of active entities, and total volume have all increased as on-chain economic activity surges before the halving.
The number of active addresses (and entities) has increased to levels not seen since the 2017 bull market – as has the number of new addresses – suggesting an increase not just in activity, but also in adoption. Not only are we seeing increased on-chain activity from new adopters, but also from longer-term investors; specifically, hodlers and whales.