Why Bitcoin (BTC) rose by 85 % this year: Review of the second quarter of 2023

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Von Krypto News Österreich

According to the Market Analysis company Reflexivity Research, Bitcoin (BTC) performance is a model for earlier 4-year market cycles and signals the beginning of another potential bull market.

The company published a report this week that examined the drivers for the strong performance of the financial value in the second quarter and examined both the market structure and on-chain data.

Who buys Bitcoin?

As the report says, Bitcoin's current tailwind is due to two decisive events this year: the banking crisis surrounding Silicon Valley Bank (SVB) in March and the application from BlackRock for a Bitcoin Spot ETF in June.

Each event "brought the digital gold unequal advantages compared to other digital assets," the report said. Bitcoin now accounts for over 50 % of the total market capitalization of cryptocurrencies and bulls like Michael Saylor predict larger highs because regulatory measures withdraw the capital from old coins.

The oversized interest in Bitcoin is visible on the futures market, where the eternal Bitcoin futures "clearly remove from the eternal ethers".

Bitcoin Perpetual Futures vs. Ether Perpetual Futures. Glassnode

The growing interest in Bitcoin seems to come mainly from the United States, where Blackrock's latest application could produce the country's first official Bitcoin Spot ETF. The report states that the majority of Bitcoin's performance has taken place since the asset manager submitted during the US trade times.

In addition, the open interest in Bitcoin-CME FUTURES has increased by $ 1 billion, which is a further reference to a higher activity in US companies.

A look at Chain

In terms of network data, the researchers emphasized Ordinals as a "space that should be kept in mind in the upcoming quarters". The total number of ordinal inscriptions is now almost 15 million, with the miners have so far been brought in additional fees of $ 56 million.

The number of Bitcoin addresses with more than 1 BTC has exceeded the 1 million mark for the first time in this quarter, and the network has processed transactions worth around $ 2 trillion during this period.

Based on the findings of other companies, including Glassnode and Santiment, Reflexivity said that the Bitcoin offer held by long-term owners is now relatively high, which means that market participants do not intend to sell their coins in the foreseeable future.

"If some of these ETFs are approved, the effects of the newly discovered demand could be very strong in the event of an almost record depths," wrote the company.

Nevertheless, a Black-Swan event is still in sight. "[It]" It seems to be an early inner for this current bull cycle, and the possibility of testing cycle depths similar to that in March 2020 is still there, "concluded the report.

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