The Day-1 Foundational Fundamentals of Bitcoin are Improving, But When Will the Value in USD React?
Bitcoin has been in a bear trend since December 2017, when it reached $20,000, its all-time high. After it, Bitcoin lost more than 80% of its value and has not recovered the price it lost last year.
However, Bitcoin fundamentals are improving, which increases the chances of a new bull market in the near future.
Bitcoin Fundamentals Show Signs of Improvement
Bitcoin fundamentals are starting to grow, increasing the attention that investors pay to the most popular digital asset. During a conversation with Bloomberg TV, Spencer Bogart of Blockchain Capital, mentioned that there is innovation, talent and capital in the cryptocurrency space. He then went on saying that although Bitcoin’s price fell, talent remained in the space.
He has also explained that rising debt levels, quantitative easing and global concerns allow Bitcoin to be the “most compelling asset” around the world.
Dan Held, the co-founder of Interchange, wrote a tweet in which he says that he is more bullish than ever on Bitcoin. He emphasized that Bitcoin market capitalization is smaller than Starbucks, less than 0.1% of the world owns Bitcoin and we are just 441 days for the next halving.
He went on saying that by late 2020 a new Bitcoin ETF could be approved, allowing new investors enter the market and have exposure to digital currencies. Moreover, he said that there is a record in government debt and that institutional plumbing is being built.
Bitcoin is going to be halving as soon as in May 2020. Once that happens, Bitcoin could start to grow once again. Indeed, Bitcoin rewards will fall from 12.5 BTC per block to 6.25 BTC. With a larger interest from institutions (through an ETF and other mechanisms and investment tools), and a larger share of the world’s population owning Bitcoin, the price of the digital asset could start a new bull run.
I'm more bullish than ever on Bitcoin:
– Bitcoin market cap is smaller than Starbucks
– Less than 0.1% of the world owns Bitcoin
– 441 days until halvening
– Bitcoin ETF coming by late 2020
– Record government debt
– Institutional plumbing is being built
— Dan Hedl (@danheld) March 10, 2019
Although these are very positive things for Bitcoin and the cryptocurrency market in general, they’ve failed to attract the interest of investors around the world. Indeed, Bitcoin remains operating under $4,000, even after reaching $4,200 at the beginning of January and at the end of February.
According to the team at Pantera Capital, they have been surprised to see that the prices have deviated from the underlying fundamentals. They also say that these fundamentals are now stronger than ever.
One of the reasons why the cryptocurrency market is not reacting positively to this is due to the fact that the market remains in one of the last phases of a bear trend. Thus, traders are still speculating with Bitcoin’s price in the short term. That’s the reason why there are several bearish individuals and experts in the market that believe that Bitcoin could keep falling in the near future.