Throughout this week, Bitcoin's volatility woke up and the cryptocurrency reached a new value of 5 figures, meanwhile, despite the increase, investors continue to store their BTC in offline wallets.
In previous important movements in Bitcoin there was an increase in the activity of the exchanges and exchange houses for cryptocurrencies, , since in a significant increase, users began to move their BTC to get the most out of them. However, currently, despite Bitcoin's increase of approximately 20%, which marked a new high for the cryptocurrency so far in 2020, the movement in user accounts on exchanges remains low, according to reports Arcane Research in your Twitter account.
According to the research firm for cryptocurrencies and digital assets, current data suggests that investors prefer to use Wallets private companies offline to store their bitcoins, which in turn may decrease or generate less sales pressure than expected in the coming months.
It may interest you: FiCAS successfully launches the Bitcoin Capital Active ETP (BTCA), now trading on the SIX
Bitcoin continues to be seen as digital gold
One of the main reasons that researchers believe is behind investors' decision to keep their cryptocurrencies stored offline is that, with the measures implemented by governments to continue printing money, users and investors continue to see Bitcoin as the gold 2.0 or gold digital. This means that Bitcoin is appreciated as an asset that will be maintained in the medium and long term, protecting its value against inflation produced by the economic measures implemented by governments; In addition, it is estimated that it will be supported by the active commercial market produced by those users who prefer or need to sell their BTC more frequently.
Likewise, another possible reason why investors keep their BTC offline is the rise and growing popularity in Bitcoin derivative products, which can allow investors to leverage their funds exponentially and significantly.
For its part, although gold has always been seen as a safe and stable haven of value, and until recently reached a new all-time high, exceeding $1.900 USD per ounce, we must not forget that Bitcoin shares, e even surpasses several of the characteristics potentials that the precious metal has to be considered a haven of value. Because of this, many experts believe that Bitcoin can equal and surpass, in the long term, the position of gold, and even more so as society is developed and driven by new technological advances.
Will the bull market continue for Bitcoin?
Bitcoin closed the second half of 2020 with high profitability, and started the third half on the right foot. If the rise continues over the coming months, Bitcoin could confirm an upward trend similar to that seen in 2017, when the cryptocurrency reached its all-time high of $20.000 USD per unit.
Various traders and market experts considering that if Bitcoin breaks the $15.000 USD resistance, the cryptocurrency will surpass its all-time high of $20.000 USD in about 6 months. There are even those who go so far as to assume that the value of Bitcoin will reach $50.000 USD by mid or late 2021. For its part, when Bitcoin managed to break the resistance of $10.500 USD that it maintained for around 2 years, it clearly confirmed a trend. bullish for experts, since when an asset breaks a resistance level like this it usually continues to grow.
Continue reading: Bitcoin Price Surpasses $11.000 USD as DeFi Continues Exponential Growth
