A New Bitcoin Spring: Here Are the Factors Driving an Imminent Bull Run
There have been several forecasting models that have predicted that the price of bitcoin will reach $20,000 this year. Although several investors are skeptical and are hoping this won’t end up like the last bull run in 2017.
The new upswing in the price of Bitcoin is influenced by a confluence of factors, making it different from similar trends.
These factors include the following:
- HODL waves
- High hash rate
- Crypto influencers
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According to Philip Swift, Bitcoin web portals analyst, the ‘hodl waves' chart shows how a Bitcoin bull run could be imminent. He tweeted that 60% of all Bitcoin in circulation hasn't moved in twelve months.
He also added that the last time this was seen was in 2016, only a few months before the start of the 2017 Bitcoin bull run.
Glassnode, a blockchain data intelligence provider, asserted in one of its weekly publications that “this clear hodling behavior is macro bullish for Bitcoin, supporting the narrative that BTC is a store of value.”
The company elaborated that long term hodling is usually followed by bull markets, based on past trends. Glassnode also added that many investors believe that based on current prices, it is better to hodl Bitcoin than to sell, suggesting that the sentiment will favor a price increase for Bitcoin.
The current high Bitcoin hashrate is also a good indicator of the network's health. A high hashrate against a low one is preferred since the implication is that the system will be more secure from the 51-percent blockchain attack.
Earlier this year, Jeremy Britton, CEO of Boston Reading Co., had told finance magnates that the rising hashrate has forced miners to hoard rather than sell newly mined coins, reducing downward pressure and raising the price floor.
Several crypto influencers are skeptical that altcoins may outperform Bitcoin. However, the crypto community has made trading between altcoins and bitcoins quicker. When altcoins run, users can convert them to bitcoin.
Crypto influencers repeat this process a few times and make the Bitcoin-altcoin supercycle occurs. Considering the crypto videos and tweets about the altcoins run in the past, one can argue that the Bitcoin-altcoin cycle is certainly being fueled.Read Also :The Chainlink Emergence: Opportunities and Prospects