3 Bitcoin basics that will spark the next epic bull run
3 Bitcoin basics that will spark the next epic bull run
Bitcoin has performed a consolidation in the past six weeks, which has caused many analysts to suspect a low point. However, fundamentals are solidifying, and these three fundamentals could trigger the next bull run for BTC.
Bitcoin has risen nearly 2.5% since yesterday, hitting weekly resistance at $ 7,480 a few hours ago. A rally launched by US military action against Iranian targets has held its gains, but the longer-term picture shows that BTC is still in a narrow trading range.
No further momentum is likely until the break above the $ 8k mark, but the following fundamentals could be the catalyst for a BTC rally return.
1. Record-breaking hash rate
According to bitinfocharts.com, the hash rate has just reached a record high of 114.5 EH/s. This is almost eight times higher than during the bubble in late 2017, according to industry observers.
“Bitcoin’s fundamentals tell me the #BTC price is about to explode IMMEDIATELY!”
The #Bitcoin hashrate has hit a new all time high of 119,354,000 Th/s.
This is 8x what the hashrate was back in 2017 at the $20,000 top.
The Bitcoin fundamentals tell me that the #BTC price is about to explode SOON! pic.twitter.com/Mzk4XllKQS
— The Moon (@themooncarl) January 4, 2020
That should destroy the thesis of the miner surrender – because network strength and security are better than ever. Hash rates aren’t directly correlated to price, but they’re a good sign of the overall health of the Bitcoin network.
2. Bitcoins cut in half
No Bitcoin article is complete without mentioning the halving in five months. There are various theses about how the four-year event will negatively affect the profitability of the miners.
It is also true, however, that according to an efficient market hypothesis, the markets do not wait for a known event, but move in anticipation of an event when speculation increases.
However, previous halving has resulted in major rallies after halving, and there’s no reason why it should be any different this time. Stock to flow and bitcoin energy value models all suggest that bigger gains are inevitable.
3. Safe haven asset
There is no doubt that Bitcoin has cemented itself as a safe haven. Despite what Hater Peter Schiff as thinking: BTC has in addition to gold and oil recovered when the news of the drone killing of Iranian top general late last week it was announced.
The volume of local bitcoins in countries with economic problems, hyperinflation and capital controls has increased significantly in the past year. In all likelihood, this will remain the case in 2020.
Bank bailouts have intensified and interest rates are in negative territory worldwide. This punishes savers and leads to a further accumulation of debt. The answer from the world’s central banks is printing more money – but it’s totally unsustainable.
Heightened geopolitical risk has resulted in both gold and Bitcoin moving higher, but for different reasons. #Gold is being bought by investors as a safe haven. #Bitcoin is being bought by speculators betting that investors will buy it as a safe haven.
— Peter Schiff (@PeterSchiff) January 3, 2020
The younger, technology-loving generations will not want to be ripped off by the banks like their predecessors, but will look for decentralized systems for their future and store their assets there.
