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Bitcoin met its 13th birthday with a fall, on January 3, 2009, Satoshi Nakamoto mined the genesis block of the cryptocurrency, forever changing the usual world of finance. The decline in BTC remained within the lower border of the flat, which has been going on since the beginning of December last year, which technically gives a chance for today’s rebound in quotes.
A number of analysts point to four factors that can turn a rebound into impulse growth not only for Bitcoin, but especially for altcoins, Ethereum’s closest competitors.
The growth of cryptocurrencies with smart contracts is due to yesterday’s speech by Vitalik Buterin. The Ethereum founder acknowledged the difficulty of switching to a PoS algorithm, while still not voicing specific plans for the launch of version 2.0. Thus, Buterin only strengthened insider rumors that the merger of ETH1 and ETH2 will be postponed to 2023.
Vitalik Buterin analyzed his own forecasts
The interview was the first growth factor for altcoins and cryptocurrencies in general. Almost all EVM-compatible blockchains completed yesterday in a record plus: Fantom (+ 16%), NEAR (+ 15%), Algorand (+ 8%) and Cosmos (+ 10%), which is slightly falling out of this scheme.
Probably today, speculators will pick up the rest of the utility tokens of blockchains competing with Ethereum. The growth of these cryptocurrencies is predetermined by another important point – the continuous increase in TVL investments throughout December.
According to DeFi Lama, investors have frozen $ 8 billion in smart contracts over 4 holidays from December 30, 2021 to January 3, 2022.
This trend has all the chances to accelerate, as well as the influx of Cryptocurrency Buyers due to the second factor – the end of the New Year holidays.
Today is the first working day in Asia and Europe, which in 85% of cases began with the purchase of stocks and cryptocurrencies. Unlike stock indices, which happened to be at historic highs at the beginning of the new year, Bitcoin is 35% lower than last year’s highs. This makes the digital asset undervalued in the eyes of investors.
The purchase of cryptocurrency looks attractive in light of the third factor – the divergence of the dynamics of the BTC rate and US Treasuries US 10Y. The yield on 10-year US bonds has been correlated with the Bitcoin rate for two years.
Bitcoin Correlates With 10-Year Treasury Rates Why This Is Bad News
Now, at the beginning of January, the situation has developed as it was in September. The impulse jump in US 10Y yield occurred against the backdrop of a flat decline in BTC. Then in September, this led to the subsequent medium-term growth of Bitcoin.
The hashrate is the last, fourth factor that indirectly stimulates the positive trend of the cryptocurrency. The computing power of the Bitcoin network hit its all-time high yesterday, taking transaction security to a new level.
Miners prove that they have not only survived China’s mining ban, but are also ready to further increase the hash rate. Through the efforts of the PRC, BTC mining is now distributed around the world, the largest share is in the United States, but it does not exceed 20%.
In the early years of the blockchain, China accounted for more than 90% of mining and cryptocurrency transactions, but then the communists did not consider BTC to be something dangerous for the authoritarian system of public finance.
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