Are We Right to be Bullish? These Stats Will Make us Think Twice
In May, the Bitcoin halving is set to take place. This will see miners rewarded half of their current block rewards. The last time the halving took place was in 2016. It was one of the reasons for the upward trend the price of Bitcoin experienced. It is expected that the upcoming halving will also have a similar effect on Bitcoin.
However, there are other factors and other statistics that the community must consider before being extremely bullish about the future of Bitcoin.
Bitcoin’s price has gone up 50% so far this year. Nevertheless:
• monthly # of blockchain txs is going down
• monthly volume of $BTC transacted in the blockchain is going down
• txs fees are ridiculously low
• # of new unique addresses is going down
Bullish? I say: dog shit!
— Jared Vennett (@grglippmann) February 19, 2020
The arguments raised by this tweet are significant. They allude to the façade that is a bullish community and a rising Bitcoin value while the true statistics remain scary at the very least.
Community Maybe in For a Rude Awakening
It is exciting to assess predictions, especially when they bullish; nevertheless, the reality is what reigns in the end.
The harsh reality is that things may not be as rosy as the predictions may say. Despite all the signs of an upcoming bull run, the fact remains that the fundamentals of the success of Bitcoin are performing poorly.
Reducing transactions, reduced monthly volumes, and a reduction of new unique address point to a market that is slowing down or being cautious.
Fake volume, No new buyer. 80% traders already crashed in leverage trading.
— Zinnia Red (@MisbahMumtaz6) February 19, 2020
The tweet above puts a lot into perspective, which many bullish analysts are not considering. Various influences could easily crush the new all-time high aspirations part of the community has.
Additionally, the effect of whales must also be considered. They may be influencing the price in the direction they want. They could easily be pumping before they eventually dump for their gain.
More consideration needs to be given before jumping onto the bullish (hype) train.
Featured Image Source: Shutterstock
Sal Miah is the senior editor at Blockspectator News and is a regular contributor to a variety of cryptocurrency news websites and projects. He has written hundreds of articles on numerous topics related to blockchain and also has a special interest in financial markets. Contact him directly at firstname.lastname@example.org