Bitcoin is ready for the biggest breakthrough in 2020 — to a new record level
Coinmetrics predicts a jump in the price of Bitcoin to a new historical high, as halving reduces the issue of BTC and the asset registers a high correlation with gold which prepares the cryptocurrency for “take-off”.
Altcoin market suffers losses, but not BTC
The top 10 losses over the past 24 hours range from a minimum of 2 to 8%, in the extreme case of Polkadot. However, Bitcoin has managed to maintain its gains. The Coinmetrics report shows some bullish indicators for the cryptocurrency and predicts an increase in its growth.
At the time of publication, Bitcoin is trading at $ 13,740 with an increase of 1.48%, while the cryptocurrency was able to maintain this level of support after falling by $ 300. Bitcoin recorded gains of 2.74% and 22.77%, respectively. Ethereum and XRP show a 7% loss over the past week.
In the mentioned report, Coinmetrics points out that after the announcement of the Covid-19 pandemic, when the market collapsed, Bitcoin “grew in a way that we haven’t seen in previous bull races.” As such, they indicate that the fundamentals of the cryptocurrency point to a major price break.
The king of cryptocurrencies has shown a strong correlation with gold since March 12 this year. After black Thursday, the narrative of Bitcoin as gold 2.0 gained strength among investors who embraced the cryptocurrency as a means of saving. In this sense, BTC showed the highest correlation with gold and, conversely, the lowest correlation with the us dollar.
“BTC is digital gold, and with each new round of events in the crypto market, we are convinced of this. In recent years, many companies, such as MicroStrategy and Square, have announced that they are buying and holding BTC as a reserve asset of the Treasury. In addition, on-chain data shows that since March 12, Bitcoin’s hodling (also known as HODLing) has increased and the price has increased”.
In confirmation of the above, the percentage of BTC supply, which has remained unchanged for a year, is at its highest level-more than 62.5%. At the same time, the Bitcoin network has reached a record high in the number of holders — more than $ 100. On October 22, this figure was 9.74 million. According to Coinmetrics, this trend says that the number of Bitcoin holders is increasing, and indicates a trend of cryptocurrency adoption.
The impact of Bitcoin halving on value
During 2020, the percentage of coin holders who transferred their assets from centralized exchanges increased. This indicates an increase in the number of people who chose to keep their BTC in storage. The most important conclusion of Coinmetrics is related to the issue of BTC, which has significantly decreased after being halved:
“Historically, the price of Bitcoin has reached a local peak for 1.5 years after each previous halving of the reward. With holding activity increasing and halving in less than six months, all signs signal that BTC is ready to take off”.
In this sense, crypto trader and investor Josh Rager stated that 24 weeks after the halving, Bitcoin is “on track to reach new highs”. Rager compared the price of the crypto asset after being halved in 2016 and the current one, and believes that Bitcoin will make a significant step in the coming months.