The bitcoin price has fallen below $20,000 and more fear and panic has crept into the market with a score of '28' on the Crypto Fear & Greed Index. The rumor that the 140,000 Mt.Gox coins would be in circulation turned out to be false. In addition to the uncertain macro conditions, rumors like these are fueling fears and bitcoin owners are more likely to exchange their btc for dollars or euros.
https://twitter.com/CredibleCrypto/status/1563634071170719744
1. 'Weak dollar makes bitcoin rise'
But the dollar and the euro are also weak. Inflation and purchasing power are popular search terms at the moment. You buy much less for the same euro and prices are also skyrocketing in America.
Bitcoin analysts such as Nicholas Merten (DataDash) also see that current inflation levels continue to eat away at the purchasing power of people and businesses. There will come a time when there is much less confidence in the dollar and the euro, making bitcoin more attractive as a hoarding tool, Merten believes in this video. He draws a comparison with the function of gold in the 1970s.
'If the Federal Reserve doesn't take the lead in cooling inflation. If the Fed can't do it, we lose confidence in the dollar as a world currency, but also in other fiat currencies like the euro and the pound. If there is no stable dollar, a lot of liquidity is released which wants to go somewhere and that is exactly what happened to gold in the 1970s.' The price of gold has risen considerably since the 1970s.
2. Tens of millions of addresses in the red
The price is falling and that logically also has an effect on the number of UTXOs in the red. UTXO literally stands for Unspent Transaction Output and is a bit of bitcoin which has not been spent on a bitcoin address. The total of UTXOs is the balance you read off in a wallet.
Figures from Glassnode show that the number of UTXOs on-chain at a loss has now shot through the 35 million mark, the highest level in the past month (based on a seven-day average).
https://twitter.com/glassnodealerts/status/1563666574766120969
3. Number of relatively small addresses continues to increase
On the other hand, the number of addresses with 0.1 bitcoin or more continues to increase. This trend is persistent and is not abating due to the recent dip below $20,000 (again). This could have a number of explanations: more new bitcoin owners opening an address.
But it could also be motivated by the desire to be more private with your coins. Opening a new address with each transaction increases your privacy. A consequence of more address management therefore possible.
https://www.indexuniverse.eu/tens-of-millions-of-bitcoin-addresses-plunge-into-the-red/
Comments
Post a Comment