Bitcoin (BTC) is „at the beginning“ of a long bull run and there are more and more reasons to accept it.
That was the opinion of Dan Held, head of US cryptoexchange growth, Kraken, who listed the latest evidence of Bitcoin’s rise on August 24th.
Many commentators argue that Bitcoin is starting to grow in terms of price increases. For Held, the contributing factors are both Bitcoin-specific and macro-related.
How has Bitcoin behaved since halving?
UTXO earnings are around 98%.
Over 97% of Bitcoin unspent transactions (UTXOs) – or parts of a transaction that involve coins returned to the originator – are profitable.
As reported by Cointelegraph, this means that less than 3% of the transactions occurred at a price higher than the recent high of $12,400. Typically, this occurs at the beginning of rising periods.
Put another way, nearly 98% of all BTCs are now worth more than received, which means that long-term investors are better off than almost any other time in Bitcoin’s history.
Bitcoin has stayed above $10,000 for the second longest period of its life, equaling July 2019.
Bitcoin price periods about $10,000
Bitcoin pricing periods around $10,000: Twitter
This Bitcoin whale sold BTC at a price of $12,000 after keeping it for 2 years
HODL supply downtime
Meanwhile, as CasaHODL co-founder Jameson Lopp noted, the year’s active supply has reached its lowest level since the early days of 2011.
„People don’t want to get rid of their bitcoin,“ he summarized.Bitcoin current supply velocity and active supply velocity chart
Bitcoin current and active supply speed graph. Source: Coin Metrics/Twitter
Held referred to the fact that 61% of BTC’s total supply remained static for more than a year, something Cointelegraph previously identified as a bullish signal – investors are choosing to hold, not trade or sell.
The fact that exchange balances have also fallen so low contributes to the theory.
A timely halving
The above factors that occurred in the months following the halving of the third block subsidized by Immediate Bitcoin reinforce the bullish argument.
Miners have recovered from the loss of revenue, while demand has remained evident, especially from corporate and institutional buyers.
At the same time, Bitcoin’s inflation rate has declined as a result of the halving, making repeated large-scale purchases an increasingly expensive business.