Research: Bitcoin’s Current Economic Position Makes it Primed for a Massive Investment Uptrend
- Grayscale’s latest research study points to the fact that BTC is currently experiencing “optimal growth conditions” that will allow the flagship asset to gain immense financial traction within the coming few weeks.
- According to the folks over at Grayscale, Bitcoin has the innate potential to perform well during normal economic cycles as well as liquidity crises — even those involving severe currency devaluations.
Since the start of the year, the crypto market at large has been experiencing favorable market conditions. In this regard, we can see that a recent study released by Grayscale shows us that the flagship crypto asset is all set to surge in the near future.
For those of our readers who may not be aware of Grayscale, the Barry Silbert run firm currently has under its management a total of $1.2B worth of assets.
Not only that, a spokesperson for the company also revealed that over the course of the past 4-6 months, Grayscale’s monetary inflow had increased by a total of 42 percent. On the subject, he then went on to elaborate:
“Grayscale experienced a 42% uptick in product inflows quarter-over quarter, from $30.1 million in 4Q18 to $42.7 million in 1Q19. Notably, hedge funds ramped up their investments substantially, from less than $1 million in 4Q18 to approximately $24 million in 1Q19.”
Grayscale’s aforementioned research piece has revealed that BTC is currently in the midst of its ‘financial sweet spot’ (which is allowing the premier altcoin to lure in more investors with each passing day).
The study also alludes to the fact that Bitcoin’s ongoing uptrend could possibly have been spurred by the currency’s upcoming “block reward halving” — that is scheduled to take place in May 2020.
From a historical perspective, we can see that halvings have, more often than not, helped increase the average returns associated with Bitcoin in the years that have followed the event. For example, following each of BTCs previous halving events — November 2012, November 2013, July 2016 and July 2017 — the price of the altcoin surged quite visibly.
A number of technical indicators associated with Bitcoin (BTC) seem to indicate that the premier crypto-asset is currently experiencing high levels of stability. It now remains to be seen how the financial future of the digital currency plays out.