Bitcoin Market Looks Same Like 2016 before the Epic Bull Run Started
The Grayscale forecast predicts that demand for Bitcoin will rise significantly in 2016 as inflation rises, underscoring the need for scarce monetary commodities and, in the case of the cryptocurrency, encouraging use. He argues that the current Bitcoin Market Structure (BTC) has the potential to help bitcoin achieve its historic bull run.
The report also identifies several indicators of growing interest in crypto, noting that the number of daily active addresses, a measure of the number of transactions on the Bitcoin network per day, has increased. Grayscale also points out that, despite the recent rise in interest rates, the number of Bitcoin exchanges is low, with only a handful of active exchanges still active.
The report claims that the US gold standard’s monetary policy abandonment has been eased, leading to a debt cycle fuelled by asset bubbles and the aggressive quantitative easing that followed. Grayscale notes: “The US economy has become so addicted to printing money to keep itself afloat, and history has shown that it is difficult to stop this addiction.
Although the US dollar remains structurally strong relative to other currencies, the report claims that inflation-sceptical investors are looking for ways to protect themselves against an ever-growing money supply the case of Bitcoin, is being supported as a store of value.
GrayScale cites a scoring system used to compare Bitcoin’s properties with cash, gold, and financial assets to determine the growth potential of the market. S & P has fallen 20 percent since the tapering of monetary expansion in 2018, according to Grayscale.
