It has been three years since the most important rally in the history of the most popular cryptomone. Currently, the Bitcoin market presents characteristics that assimilate it to the period prior to the aforementioned 2017 rally.
This is stated by the major analysis firm Grayscale in its recently published report Valuing Bitcoin. Price behavior and adoption by major investors, coupled with conditions of likely widespread fiat money inflation, could lead Bitcoin to a new bull run.
Considering that this year the Bitcoin market hit bottom, and that now, just 4 months later, this cryptomone currency has come back to life, one can conclude that there is a powerhouse that is close to exploding the price with proportions comparable to those of 2017.
Bitcoin’s current market is also post Halving
Another important aspect to understand the qualities of the current Bitcoin market is that we are waiting for the respective post-Halving explosion. It should be remembered that after every Halving, the deflationary nature of Bitcoin pushes up prices significantly.
In the first two Bitcoin Halves, (2012 and 2016) the price of this crypt currency skyrocketed. The period for this to happen was approximately one year after the cut. Now, it’s been three months since Halving and the feeling that the rise to balance the current Bitcoin market is still missing is latent.
The Halves are events that happen in some crypto-currencies, including Bitcoin, which occurs every 4 years. This event consists of cutting in half the reward paid by the Blockchain network to the miners for each valid block processed.
Bitcoin Futures Market Rising
Similarities to 2016 behavior
For Grayscale, the current market conditions for Bitcoin Rejoin are extremely similar to those prior to the historic rally. „It’s very similar to the early 2016 structure before the start of the bull run the following year,“ the report explains.
On the other hand, Grayscale believes that government actions to try to keep the economy afloat in pandemic conditions can benefit Bitcoin. That’s because investors are looking to keep their income safe, and the main cryptomoney, in that sense, functions as a safe haven.
An excess of money in circulation leads directly to inflation. This is one of the phenomena most feared by investors. Announcements by the US Federal Reserve to print „infinite money“ are pushing investors every day to adopt Bitcoin, making the current market for that crypt enter a boom phase again.