• Sat. May 21st, 2022

Why the 2019 Bitcoin Network Record is Bullish for the Crypto Market

Although up 70% year-on-year, Bitcoin did not have the best of 2019 from a market perspective, with price jumping 330% to $ 14,000 before dropping to $ 6,400. just at the start of the month.

Despite this heartbreaking price move, which some analysts say is indicative of mass indulgence in the crypto market, recent data compiled by a chain cryptocurrency analyst firm suggests that 2019 has been a year. A record year for Bitcoin in terms of metrics and on-chain fundamentals.

This bodes well for the crypto market in the long run.

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Bitcoin Network Record 2019

According to a recent thread Published by TradeBlock, Bitcoin’s 2019 price action aside, was a banner year for the most basic metrics in the chain: number of trades, volume of USD trades, and hash rate.

The growth in the number of transactions apparently stems from the growing adoption of the SegWit solution, allowing more transactions to be placed in each block, while the total annual Bitcoin transaction volume has been helped by the price action in recent years. months, which forced exchanges and traders to use the network as a means of payment.

Related Reading: Why Bitcoin Must Close Above $ 8,000 To Catalyze Next Bull Run

Bullish for the crypto market

So why is it bullish for the price of cryptocurrencies?

Well, first of all, Blockchain Capital partner Spencer Bogart suggested in an interview with Bloomberg that the growing functionality of Bitcoin as a payment network will act as a catalyst for the price of BTC to rise again in the future. 2020 and beyond. He specifically cited the fact that the network “processes between $ 1 billion and $ 3 billion in transactions daily”, a far cry from when cryptocurrency was considered “a joke” just a few years ago. .

In addition, solid metrics have led Adaptive capital partner Willy woo, a leading analyst across the cryptocurrency space, to note that the channel’s momentum is “turning into bullish territory” after a several-month slowdown.

With that in mind, he asserted that “the low is most likely inward,” meaning any move below the $ 6,500 dip “will only be a wick in the macro view.” He added that the unnamed indicator also implies that cryptocurrency investors will begin to anticipate the impending “halving”, the block reward reduction that will take place in May 2020.

Related Reading: The Key Bitcoin Signal That Preceded The 330% Rally To $ 14,000 Flashes Again
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