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Bitcoin metrics remain robust, but price remains stagnant

Mercado al día is an exclusive summary of the news that moves the bitcoiner economy. It is sent in advance by email to a list of subscribers and then published every Monday on CriptoNoticias. If you want to have the information in advance, subscribe to the list here.

Almost three months into the longest correction of this upward cycle, the price of bitcoin (BTC) has moved sideways in the last week between USD 32,000 and USD 35,000. Leading market analysts and traders maintain, however, that the Bitcoin network is healthy, seen through its most important metrics.

Bitcoin has traded below $ 40,000 since mid-May. Source: TradingView.

The analyst Willy Woo, for example, highlights in a report reviewed by CriptoNoticias last Wednesday, July 7, that there is a divergence between price laterization and the on-chain data structure. Woo refers to a growth rate of 30,000 daily users, among other parameters. Long-term investors, on the other hand, continue to accumulate BTC, without the market noticing, says the analyst.

These and other bullish metrics should push bitcoin price well above current levelsWoo maintains. In his analysis he highlights that the last time he saw this scenario was in October 2020, when the market was coming from a bearish phase in September of that year and a “bitcoin supply shock” similar to the current one.

Bitcoin to exceed $ 100,000, says Tone Vays

In his speech at the Jalisco Talent Land virtual conference, last Tuesday, July 6, the trading specialist Tone Vays stated that the price of bitcoin will exceed USD 100,000, driven by the deficiencies of fiat money. Vays supports his thesis, discussed in CriptoNoticias, on the fundamental analysis of the bitcoin market.

The analyst and trader maintains that speculating with the price of bitcoin is not an easy task, as it requires dedication and study. Rather, he advises a strategy of HODL, of long-term retention, because he believes that the first cryptocurrency goes beyond being a source of short-term profit.

Bitcoin shows robustness amid miner migration

As a result of the Chinese government’s restrictions on Bitcoin mining operations, there was a record reduction in the hash rate at the end of June, causing slower processing of network transactions. The interval between blocks reached a maximum of 32 minutes, when the average time is normally three times less.

Intervals between Bitcoin blocks in 2021. Source: Glassnode.

CriptoNoticias reviewed this Saturday the 10th, a Glassnode study in which the mining metrics affected by the migration of miners are reviewed. In the report, the flexibility of the network is evident in the event of significant variations in processing power.

Exchange traffic decreases in June

Visits to exchanges registered a considerable decrease in June, according to a study by Similar Web, reviewed by this medium last Friday, the 9th. This decrease is consistent with the deterioration of the price of bitcoin and, in general, of the market of the cryptocurrencies. Four of the world’s top exchanges posted a drop last month, on average, of 37%. Binance, the exchange with the highest traffic, with 150 million visits, decreased its traffic by 40%, compared to May. Coinbase, which received 71 million views, posted the biggest monthly drop in June of 44%. May has been the record month for visits this year, with 638 million entering exchanges.

Featured tweet of the week

Bitcoin as a store of value is frequently compared to gold. Even with the current sharp correction, bitcoin is above gold’s performance in 2021. PlanB’s tweet (@ 100trillionUSD) presents a graph of bitcoin’s price denominated in ounces of gold, and it is found that more and more gold is required to buy a BTC.

In 9 years, bitcoin has appreciated more than 1,000 times against gold. Source: 100trillionUSD on Twitter.

In 2012, according to the graph, it took just 0.01 ounces of gold to acquire 1 BTC, which was below $ 100. In 2016, when the first cryptocurrency closed around USD 1,000, it took 1 ounce of gold to buy 1 BTC, meaning that the first cryptocurrency appreciated 100 times against gold in four years. In January this year, the price of 1 BTC was above 10 ounces of gold and PlanB’s question is how many ounces of gold will be required at the close of 2021 to acquire one BTC?

Square to develop bitcoin wallet

After the announcement of the CEO of Twitter and the payment processor Square, Jack Dorsey, about his plans to launch a bitcoin wallet, the latter company is looking for computer experts to form the team that will be in charge of the development. The device would be open source and “assisted self-custody”, Dorsey had advanced in his initial tweet, commented by CriptoNoticias. One of the Square developers confirmed in the call to developers, reviewed by CriptoNoticias, that it is a hardware wallet designed for the self-custody of bitcoin to become widespread.

The impact of Grayscale’s bitcoin share unlocking

Shares in GrayScale’s bitcoin fund are put on a six-month lockdown upon acquisition. After this period, the shares are traded on the secondary market. This July shares equivalent to 16,000 BTC will be unlocked. CriptoNoticias contrasts in an article published last Tuesday, July 6, two positions regarding the impact of the commercialization of these shares on the price of bitcoin.

JP Morgan analysts have opined that the unlocking of GBTC shares, which are currently trading at a lower price than BTC, its underlying asset, will have a bearish effect. On the other hand, Willy Woo describes a strategy that combines buying short BTC futures positions with the acquisition of more shares, which would influence the price rise.

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