Crypto research company identified 3 major Bitcoin Bull-Run catalysts
When analyzing Bitcoin, many investors put the fundamentals aside and focus only on price developments. As the crypto market has stalled in the past two months, data has shown that the market has become increasingly bearish. The refinancing rate of the BTC futures markets, which reflects the mood on the market, is again negative.
However, looking at the fundamentals, the research firms and funds are extremely bullish. The head of trading at a prominent blockchain fund is so optimistic that he said in May that the “macro case for Bitcoin has never been more obvious”.
Weiss Crypto Ratings: 3 great reasons to be bullish on Bitcoin
Research giant Weiss Ratings' crypto arm has uncovered three “big” reasons why they're optimistic about BTC.
The “QE Infinity” of Monetary Policy: Earlier this year, the US Federal Reserve announced an extremely loose monetary policy to combat the economic impact of the pandemic. In one or two statements, the term “unlimited” or “limitless” was used to describe the central bank's intentions. Weiss Crypto Ratings analysts wrote that Bitcoin would benefit from an influx of fiat money into the economy: “To this end, they recently printed $ 2.9 trillion in new paper money in just 13 weeks. That's about $ 22 million a minute. Historically, investors flock to gold as a safe haven if they lose confidence in paper money. This time, they will also invest in Bitcoin . ”
Institutional money flows into the Bitcoin and crypto markets: Grayscales Bitcoin Trust (GBTC) has seen a strong influx of investments in the past few weeks. According to some reports, more coins flow into these individual funds than coins are minted. Other vehicles such as futures and crypto funds also make it clear that the institutions want Bitcoin and blockchain investments.
The "stock to flow" model predicts that BTC will rise to $ 70,000 : Weiss Crypto Ratings' own assessment of the "stock to flow" model suggests that Bitcoin will reach $ 70,000 by mid-2021.
Bloomberg's Mike McGlone lists many other factors
Bloomberg's senior commodity analyst, Mike McGlone, has identified a clash of other factors suggesting that Bitcoin is about to rise. One of them is the increasing number of active BTC users after the bear market, which was recorded in 2018 and 2019. Here's what he said last week:
“THE NUMBER OF ACTIVE BITCOIN ADDRESSES USED, A KEY SIGNAL FOR THE 2018 PRICE DECLINE AND 2019 RECOVERY, SUGGESTS A VALUE CLOSE TO $ 12,000 BASED ON HISTORICAL PATTERNS. COINMETRICS' 30-DAY AVERAGE OF UNIQUE ADDRESSES HAS SURPASSED LAST YEAR'S PEAK, WHICH IS DUE TO GREATER ACCEPTANCE. ”
McGlone has also identified the increasing correlation of Bitcoin to gold and the upward trend of the CME in Bitcoin open interest as reasons for a bull market.