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Continues the relative stability of the price of bitcoin, which has been maintained for more than two months to fluctuate between 9,000 and 10,000 dollars. Despite the global uncertainty of the economy, the first criptomoneda shows several favorable aspects, according to renowned market analysts.
This week, the latest report Bloomberg Intelligence indicates that several metrics and indicators are favorable for bitcoin can assure you “the transition to an asset highly speculative the equivalent crypto for gold.” While in the immediate the volatility of bitcoin can even decrease, Bloomberg hopes that the recent period of stability is resolved through higher prices.
To support this thesis, Bloomberg mentions that both the primary demand of bitcoin as adoption is increased. There are indicators that the institutional demand for bitcoin is comparable to ETFS based on gold, the report says, and puts as an example the fund-based bitcoin of Grayscale, the GBTC.
But the central argument in favour of a rupture bullish puts Bloomberg in the general demand for bitcoin. “The simple rule that an asset of restricted circulation, and demand increases will lead to an increase of prices, gives shape to our assessment of bitcoin,” says the report.
Then, Bloomberg lists other factors that underpin the criptomoneda original: the growing number of addresses used, investment products with more capital flows, and the open interest of the futures.
The following graph shows that the growth of the active addresses of bitcoin precedes the occurrence of a maximum in the price.
The active addresses of bitcoin have grown since may to exceed the maximum of 2019. Source: Bloomberg Intelligence.
Contents
Boom gold and correlation with bitcoin
Last Wednesday 8 of July there was a rise of record gold prices to the same levels of September 2011. In addition to the demand of ETF based on gold by western investors, cited the statements by the deputy director of the Edf on the continuation of aid federal as the cause of the steep ascent of prices.
Bitcoin also recorded on the same day a climb is steep, which confirms that its correlation with the gold continues on the rise. Even after the collapse of the markets on the 12th of march past, bitcoin has entered a new phase of docking with the traditional markets, as well as the matches with the gold you have registered overlaps with the S&P 500 index.
For many bitcoiners, the risk of this coupling is that bitcoin is more sensitive to geopolitical events and external economic. Just this Thursday, along with the negative impact on traditional markets for a resurgence of cases of Covid-19 in the united States, BTC has also recorded a sudden drop, although moderate.
Tweet highlight of the week
The analyst Willy Woo you think bitcoin was ready for a run on bullish just when Covid-19 alter that evolution. In this series of tweets proposes a model that favored a rise of prices within a few weeks. “While more tension builds up in the potential bull market, the greater the peak-to-reach”.
This is a new model I’m working on, it picks the start of exponential bull runs.
1) Bitcoin was setting up for a bullish run until the COVID white swan killed the party.
2) This model suggests we are close to another bullish run. Maybe another month to go. pic.twitter.com/wmoEdMVywF
— Willy Woo (@woonomic) June 27, 2020
DeFi booming
This week the total value of funds blocked by the platforms of the finance decentralized, DeFi, surpassed the $ 2,000 million. In February of this year had exceeded the level of USD 1,000 million, but the activity in DeFi also dropped significantly in mid-march. However, the recovery accelerated in June to spend of USD 1,050 million on the 15th of June to USD 2.250 million this Friday 10 July, a jump of 114%.
In the last three weeks, more than doubled the funds blocked in the USD on the platforms DeFi. Source: DeFi Press.
This increase in the capital blocked reflected that the loans, these platforms have gained a lot of popularity in the last few months. The dynamics of loans known as Yield Farming is such that the platforms offer incentives even to those applying for loans and borrowers, for their part, can use part of the funds blocked guarantee for loans ultra-fast, which increases even more their profits.
Bitcoin auspicious in Argentina
The trading volumes of bitcoin on the platforms P2P LocalBitcoins and Paxful, reflect a big spike between January and June of this year in Argentina. In January of this year, was marketed in that country the equivalent of USD 1.34 million in LocalBitcoins, while in June, the volume traded exceeded us $ 2.2 million. That is to say, there was an increase of 64%.
Although the volumes traded in Paxful are much lower, at us $ 9.986 marketed in January, they went to USD 70.987 in June, which represents an increase of 700%. On the side of the houses of change, there would also be a significant increase in the volume traded, in accordance with statements of Matías Bari, ceo and co-founder of SatoshiTango. Since the beginning of the isolation by the pandemic coronavirus growth in this market has been around 500%, said Bari to a local environment.
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