BTC average transaction skyrocketed in a span of just 4 months from US$25,000 to US$1,51,000 establishing a positive BTC-investment sentiment market. As crypto markets are highly sensitive to market response, it is most likely that BTC will continue its bullish trend beyond 2020. Ethereum, the second most preferred cryptocurrency could witness just a $793 increase, which is almost 190 times lesser than BTC. With that said, there is a greater provision for BTC to set the market ablaze post the halvening effect that happened in May 2020.
Even though there has been a lot of fuss around the DeFi projects storming the market and Ethereum’s transaction increasing by roughly 30%, the sentiments for BTC has not lost its charm during the pandemic. On the contrary, BTC has been able to maintain a consistent US$10,000 run at the exchanges lately in the last few months triggered by the halvening effect.
Investor Season Sets In for BTC
The demand for fiat-currency is driven by supply-demand paradigm. BTC, being independent of market regulations by centralized authorities has pushed the scope for more investments. Most investors are speculative of a significant rise in BTC halvening aftereffect that had happened in May 2020, reducing per-block BTC minting to come down to 6.5. That said, investors have gone on a reckless spree to invest more on buying the BTC to make super-normal profits after the halvening effect further intensifies. In the past, the two halvening events significantly pushed the value of BTC from $5 to $100 in 2012 and likewise, an increase of US$400 in its face value in 2016. After considering the past trends, the BTC transactions have been gradually hovering around the US$300,000 to US$3,50,000 mark despite Ethereum’s bold show triggered by the DeFi boom.
Addition of New Addressee In BTC Ecosystem
An exponential rise in BTC addressee to 9,81,000 after institutional investors like Grayscale and Microstrategy increasing their BTC investment retention currently holding as much as 2.4% of the total market cap, which is 488, 150 BTC suggest BTC could scale up to even US$15,000 mark in next few months. At the same time, government backing by China, and the US and South Korea’s plan to launch their own CBDC has pushed the market sentiments higher for cryptocurrencies. On top of the market building up for BTC and investor season setting in, it is most likely to witness a bullish trend to continue even in 2021 for BTC despite Ethereum is at its highest run in the market ever since its inception.