What takes a long time: The Bitcoin course has fought its way out of the bottom and is quoted above 50,000 US dollars for the first time since May. Is the late summer rally coming now?
Investors had to wait 102 days for the moment, but in the early hours of the morning it was finally that time again: Bitcoin had passed the magic mark of 50,000 US dollars. The long-awaited jump over the symbolic resistance underlines the recent strong performance of the largest crypto currency, which is gradually getting back on its feet after the sparse summer months. In a 30-day comparison, BTC is now 50 percent plus, Bitcoin has gained around 17,000 US dollars in just one month. This means that another key brand is within reach again. At press time, its market cap is still missing $ 56 billion to $ 1 trillion.
Losses offset each other
The wave of sell-offs in May drew a path through the returns of Bitcoin investors. However, when the 50,000 mark is reached, the losses are slowly being balanced out again. 88 percent of the total amount of BTC in circulation is currently in positive territory due to the latest catch-up. In other words: The majority of the circulating supply volume was moved to a lower price than the current price level. This shows once again that meat pays off in the crypto market.
Small investors in particular who have filled their wallets in the middle of the Bitcoin dip are likely to rub their hands. As the following graphic shows, the proportion of addresses with 0.1 or more Bitcoin has increased significantly in the last few weeks. The whales, on the other hand, got cold feet. Since the beginning of July, the proportion of addresses that hold 100 or more Bitcoin has been falling.
Clogged bitcoin inflow
The fact that demand has increased recently can also be seen from the outflows and inflows on the stock exchanges. Since the end of July, the outflow has exceeded the inflow, i.e. the amount of bitcoin bought from exchanges compared to the amount of bitcoin transferred to exchanges. The resulting shortage of Bitcoin stocks at the trading venues is reflected in immediate price jumps.
Miners lie in wait for the impact
Miners, whose outflows have stalled on the stock exchanges for some time, also make their contribution to throttling supply. Of the Miner’s Position Index shows that crypto miners have transferred significantly less Bitcoin than they produced since March. Probably out of calculation: The less Bitcoin you spend, the higher the probability of rising prices, which in turn should pay off for you in the event of later sales.
After a large sell-off at the start of the year, the reserves have visibly increased again in 2021. Miners currently hold 1.84 million BTC and thus around 9.8 percent of the total amount in circulation.
The signs are pointing to growth again in terms of supply and demand, although Bitcoin is currently still far from its dominant position in the crypto market. The market dominance, i.e. the percentage of the Bitcoin market capitalization in relation to the total market capitalization, is currently 44 percent. At the beginning of the year this value was over 70 percent. The fact that the crypto reserve currency is losing market share is reflected on the other hand by the significant growth in altcoins. Cardano was only able to set a new record high of $ 2.84 today.