Bitcoin’s Longest Streak Without a 25% Drawdown
Altcoins have been surging in different directions, but it’s worth noting that Bitcoin has not experienced a 25% drawdown in the past year for 234 consecutive days, making it the longest streak since 2011. Despite the rise of altcoins, Bitcoin has emerged as one of the top-performing crypto assets.
Bitcoin Leads in Transaction Fees
Data shows that Bitcoin currently holds the top position among blockchain networks when it comes to transaction fees over the past week. Reflexivity’s latest report reveals that Bitcoin has recorded the highest cumulative numbers of any blockchain network during this period, surpassing $100 million.
This surge in miner revenue incentivizes more operators to join the network and deploy additional machines to capture a larger share of the transaction rewards.
The Rise of Bitcoin’s Hash Rate
Bitcoin’s hash rate reached an all-time high on December 25, hitting 544 exahashes per second (EH/s). This represents a 130% increase since January and signifies increased energy consumption for network security. The integration of more efficient mining rigs has contributed to this uptrend by generating a higher number of hashes while requiring less energy.
The Resurgence of Bitcoin
In 2022, the crypto industry experienced a significant downturn, with Sam Bankman-Fried’s FTX empire collapsing and Bitcoin’s value plummeting to $17,000. However, in the past year, Bitcoin has made a remarkable comeback, with its price soaring by 155% and becoming one of the best-performing crypto assets in 2023.
This resurgence is fueled by speculation surrounding the potential approval of a spot ETF by the SEC. If approved, institutional investors would be able to enter the cryptocurrency market for the first time.
The Influence of CME Activity on Bitcoin’s Price
The open interest in Bitcoin CME futures has exceeded $5 billion, suggesting the participation of traditional financial entities. This indicates that the potential approval of a Bitcoin ETF has attracted significant attention. The CME currently holds a historically high percentage of Bitcoin’s overall futures open interest, highlighting its influence on Bitcoin’s price dynamics.
The narrowing discount on GBTC, standing at just 6% below its net asset value, reflects optimistic sentiments regarding the expected approval of a Bitcoin ETF in January.
Hot Take: Bitcoin Shows Resilience and Potential
Bitcoin’s recent performance showcases its resilience and potential as the leading cryptocurrency. Despite the rise of altcoins, it has maintained a streak without a significant drawdown, proving its stability. Additionally, Bitcoin’s dominance is evident in its transaction fees, hash rate, and institutional interest. The potential approval of a spot ETF by the SEC could further propel its growth and attract more investors to the crypto market. As we enter 2024, all eyes will be on Bitcoin as it continues to shape the future of cryptocurrencies.
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