Data explain why 2020 is a decisive year for Bitcoin
All asset classes are linked. Whenever Bitcoin rises, there is a certain inevitability of other Altcoins rising with it. It happened in 2017 and is happening now in 2020.
Over the past 8 weeks, Bitcoin has entered an accelerating climb with multiple resistance and other assets like Ethereum have done the same. As Bitcoin climbed to an all-time high, Coinmetrics reported another index that sets Bitcoin’s 2020 apart from other bullish years.
Ratio of New Highs and New Lows in 2020?
The data shown in the charts show that the average crypto sentiment rate of assets that reached new 30-day highs reached minus 30-day new lows. While Bitcoin and Ethereum rose in this context, respectively, as Bitcoin approached its previous high, the average number of peaks in 2020 was significantly higher than in 2017 (blue chart).
While there are many reasons why this year is more bullish, the data above clarifies the fact that 2020 is probably the most bullish year for Bitcoin.
Bitcoin Realized Higher Capacity Than 2017
Most of the current Bitcoin on-chain metrics are on the verge of reaching an all-time high. The BTC market cap was on average $ 330 billion last week, and daily active addresses reached 1.2 million. Now, These key peaks were also reached in 2017, but there are several important issues that have changed in the last 3 years.
The first is the increase in Bitcoin supply. Since January 2018, the amount of Bitcoin added to circulating supply exceeds $ 20 billion at the Current price point, which indirectly increased the liquidity of Bitcoin in the market. And this led to new heights achieved by BTC’s Realized Cap.
While a market cap is a variable value that changes according to the price of BTC, Realized Cap refers to the total amount of Bitcoin in the market calculated with the BTC price when the Funds were last moved. This value indicates a more organic recovery for BTC currently hitting an all-time high.
Overcome Inflation Fears Against All Odds
During the uneventful period of March, sentiments were extremely low as Bitcoin first faced potential economic uncertainty. The traditional market was in turmoil and rubbed against cryptocurrencies. While many were writing about BTC’s recovery during this time, they would now bite their lips to witness the trajectory of BTC.
Since March 14, the value of BTC has increased more than 4 times, and any move above $ 20,000 will be a 5X increase in less than a year. 2020 will be a year to be forgotten on a larger scale, but looking at past years, it has been the best year for Bitcoin.
Bitcoin (BTC) price is currently finding buyers at $ 17,219.72 dollars.