The herd of bulls is entering the Bitcoin market. A look at the user: internal growth is bullish. Do we see the $ 200,000 later this year?
Hardly any market watcher has doubted that the Bitcoin bull market is far from over. Since the local low of $ 38,000 (USD) on August 5, the No. 1 cryptocurrency has made good ground again and is trading at around USD 46,000 by the editorial deadline. This means that digital gold has grown in value by no less than 21 percent in less than two weeks.
The community is also accordingly bullish.
User growth at a record level
A common reason for the steep rise in cryptocurrency No. 1 is the growth in network participants. If you take a look at the blockchain, you will find that in the last few weeks a net of around 20,000 new “entities” have found their way to Bitcoin. Glassnode defines entities as individual users. These can be Bitcoiners, but also exchanges or other companies. In contrast to the number of new addresses, the entity growth actually has statistical significance. Finally, individual users can: use new addresses for each transaction (this is even recommended for privacy reasons); in this way, the number of active BTC addresses can increase significantly without new users actually entering the network.
The growth in participants in the world’s largest decentralized financial network has been observable for some time. Like Twitter users @dilutionproof The graph shows the mean growth since the breakout of the previous all-time high of up to US $ 20,000 northwards.
This chart by Bitcoin on-chain analyst Willy Woo also makes it clear that BTC could be on the verge of an exponential breakout.
According to Willy Woo, the current increase in users corresponds to “the onboarding of a country the size of El Salvador every two months.”
Bittrex Global CEO: “Bitcoin Is Now Mainstream”
According to Stephen Stonberg, CEO of Bittrex, BTC is already behind its early adopter phase. The catalyst for the upward trend was also El Salvador’s decision to make BTC legal tender.
Cryptocurrencies have now become mainstream. We have a double-digit percentage of adoption in both developed and developing countries. In El Salvador, Bitcoin has even been introduced as legal tender and many other countries are considering introducing Bitcoin as legal tender,
says the managing director of the Bermuda-based Bitcoin exchange Cointelegraph.
$ 200,000 later this year?
And then there was Justin Bennett. If BTC breaks its current all-time high of $ 65,000, anything is possible. Bitcoin could then rise to USD 200,000 by the end of the year, predicts the crypto analyst and founder of the Cryptoacademy on Twitter.
After all, the breakthrough of an all-time high is a symbolic indicator that could provide plenty of FOMO in the market.