Bitcoin’s Bull Run: 7 Signals That Suggest It’s Just Getting Started
The recent bull run in the price of Bitcoin has been impressive, with the cryptocurrency reaching new all-time highs. But this is just the beginning, as there are several signals that suggest the rally has room to run. Here are seven key indicators:
1. The Fed Rate Hasn’t Even Dropped
Despite Bitcoin’s price surge, the federal funds rate for borrowing US dollars has not yet dropped. This is significant because in previous bull runs, low interest rates from the Federal Reserve played a role in driving up Bitcoin’s price. The fact that Bitcoin is performing well without this stimulus suggests that there is strong organic demand for the cryptocurrency.
2. BTC’s First Ever $20K Monthly Candle
In February, Bitcoin printed its first-ever $20,000 monthly candle, indicating a significant increase in value. This milestone is a promising sign and could be an indication of future price swings.
3. Weekend Bitcoin Trading Has Dropped
Data from Kaiko Research shows that weekend trading volume for Bitcoin has been declining over the past few years. This suggests that institutional investors are becoming more active in the market during regular business hours, which is a positive sign for long-term growth.
4. The Rally Overheated Coinbase
The recent price rally caused Coinbase, one of the largest cryptocurrency exchanges, to experience technical issues and an outage. This indicates that there was a surge in trading volume and investor interest during this period.
5. A Whale Pulled $1B Off Coinbase
A large investor withdrew $1 billion worth of Bitcoins from Coinbase, indicating strong conviction in the future price of the cryptocurrency. This is a bullish sign and suggests that other whales may also be holding onto their Bitcoin in anticipation of further price increases.
6. Bitcoin ETFs Now Own 4% of BTC
The emergence of Bitcoin exchange-traded funds (ETFs) has resulted in a significant amount of Bitcoin being held by these investment vehicles. Currently, ETFs own 4% of all Bitcoin in circulation, which reduces the available supply and could contribute to higher prices.
7. Congress Floats Letting Banks Custody BTC
There is a proposal in Congress to allow regulated banks to act as custodians for digital assets like Bitcoin. If this proposal becomes a reality, it could lead to increased demand for Bitcoin from institutional investors and further drive up its price.
Overall, these seven signals suggest that Bitcoin’s bull run is just getting started. The cryptocurrency has shown resilience and strong demand, even without the support of low interest rates. With the emergence of ETFs and potential involvement from major banks, there is a strong possibility that Bitcoin’s price will continue to rise in the coming months and years.
Hot Take: The Future Looks Bright for Bitcoin
The current bull run in Bitcoin is just the beginning, and there are several reasons to believe that its price will continue to rise:
Increasing Institutional Adoption
The growing acceptance and use of cryptocurrencies by institutional investors is a positive sign for Bitcoin’s future. As more institutions enter the market, they bring with them greater liquidity and stability, which can help drive up prices.
Scarcity and Halving Events
Bitcoin’s limited supply of 21 million coins and its halving events, which reduce the rate at which new coins are created, contribute to its scarcity. This scarcity, combined with increasing demand, can lead to higher prices.
Global Economic Uncertainty
The current economic climate, marked by low interest rates and concerns about inflation, has created a favorable environment for Bitcoin. As a decentralized and deflationary asset, Bitcoin offers a potential hedge against inflation and economic instability.
Technological Advancements
The underlying technology behind Bitcoin, blockchain, continues to evolve and improve. This ongoing development could lead to increased adoption of cryptocurrencies and further support their price growth.
Public Perception and Awareness
Bitcoin has gained significant mainstream attention in recent years, with more people becoming aware of its potential as an investment and store of value. This increased awareness can help drive up demand and push prices higher.
In conclusion, the future looks bright for Bitcoin. The current bull run is just the beginning, and there are several factors that suggest its price will continue to rise. From increasing institutional adoption to technological advancements and global economic uncertainty, all signs point to a positive outlook for the cryptocurrency.
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