Bitcoin investors move to “HODLing” due to fear of inflation
According to the survey, economic uncertainty is becoming a favorable condition for crypto investors and the industry as a whole.
Political uncertainty contributes to the growth of demand for BTC
Since the largest cryptocurrency by market capitalization is now viewed by many people as a safe haven asset, many investors have decided to rely on Bitcoin to hedge against hyperinflation. Behind this is the uncertainty of US policy. Some analysts say the recent presidential debate was a big win for Bitcoin and cryptocurrencies.
This may be true to some extent. Bitcoin has become a value-preserving asset, just like gold.
In recent months, as the coronavirus pandemic has become more severe, several governments have offered to provide residents with incentive packages and other measures to save the economy. Fear of inflation has quickly increased, especially in the United States, as many investors look for safe assets to hedge against projected inflation. While some chose gold, many chose the digital currency — Bitcoin.
This was evident in a previous survey conducted by Bitcoin IRA, one of the largest retirement savings platforms that allows you to invest in digital currencies. The bitcoin IRA initially surveyed crypto investors on its platform in June to understand their current emotions and how they invested in the digital currency during the difficult times of the pandemic.
At the time, the reaction was optimistic. About 60 percent of respondents on the platform were interested in buying and storing cryptocurrency for a long time. However, less than 50 percent of investors in gold and silver showed interest in the assets in the long term.
According to the latest survey, almost 70 percent of bitcoin investors have shown interest in storing cryptocurrency for a long time. However, less than 55 percent of them want to hold gold and silver. Investors mostly call the current global crisis and high inflation around national currencies, which was caused by the COVID-19 pandemic, a threat.
Investors in the MTC are equally optimistic that the cryptocurrency will end the year at between $ 10,000 and $ 15,000.
On-chain analysis supports bitcoin bulls
If this is the case, the chances of the coin rising next month before this contentious presidential election will remain high. There are already hints that new participants are flocking and positioning themselves for a possible rally.
Willy Woo, a network analyst, said that the influx of capital into Bitcoin has not yet been reflected in the price charts.
We are seeing a surge in the activity of new participants entering BTC, which is not yet reflected in the price, this happens infrequently. This is what traders call divergence, in this case bullish.
Confirming his observation, a parallel analysis conducted by the CEO of GlassNode points to the possibility that traders and speculators will position themselves for growth in the near future, as the Cue ball seems undervalued.
BTC — real digital gold
Meanwhile, the CEO of MicroStrategy continues to proclaim his vision.
Having doubled his investment in Bitcoin, he now says the coin is real digital gold: “The asset is becoming more complex, smarter, faster and stronger thanks to the steady development of technology.”