The dominant cryptocurrency continues to shrug off its latest impediments, scaling higher since it bottomed in July and now painting a picture of imminent growth for the industry moving into the future.
In the last few months, the crypto industry has been rocked by unending criticism from anti-crypto factions who believe that Bitcoin is slated to lose more value and that it holds no intrinsic value. Despite all these setbacks, these notable stats only point to an upside for the asset.
The tremendous growth of users on the Bitcoin network
According to data released by on-chain analyst Willy Woo, the Bitcoin network has seen a tremendous growth of users. The crypto pundit displayed a bitcoin -vs- user growth chart on Thursday showing that 1.2 million users had been added to the network just within the last thirty days. These new users did not include off-chain users on exchanges which typically saw up to 3 times this number. Going by past numbers, the figure reflects almost as many users gained during the entire 2013-2014 cycle.
“This is equivalent of onboarding a country the size of El Salvador every 2 months,” he said.
Increased filings with SEC for Bitcoin ETF
Despite the SEC not having approved a single Bitcoin ETF, a strikingly high number of applications have been made to the regulator with the latest one being Valkyrie, after last weeks comments by SEC chairman Gary Gensler who appeared to have developed a particular interest in products traded in exchanges with ties to bitcoin futures.
Other firms and banks including Goldman Sachs and Grayscale have already submitted applications amidst speculations as to whether the US regulator will approve a Bitcoin ETF before 2021 ends.
According to data provided by Glassnode, there was a spike by institutional investors accumulating share in the Purpose Bitcoin ETF Holdings adding more than 30% o the bitcoin invested into the ETF, which was approved by the Canadian Regulatory authority in February, a situation that paints a clear picture on what to expect with Bitcoin’s price moving forward.
Increased Institutional Participation
In the past few months, traditional institutions have registered a parabolic growth interest for crypto with mega-companies investing in Bitcoin or Incorporating its use in their business models.
Giant film chain company AMC has announced that it shall be accepting payments in Bitcoin for film tickets and other concessions before 2021 ends while Tesla has hinted at resuming payments once Bitcoin energy concerns are attended to.
Ark Invest and MicroStrategy have been doubling down on the asset by buying dips at the earliest opportunity. Microstrategy has reportedly purchased the asset a total of 14 times since it first announced its first purchase in August last year which averages to one purchase once every 3.7 weeks.
Other private investment firms such as Tron Foundation, Neuberger Berman among others have also declared their interest in Bitcoin, expanding their balance sheet through colossal purchases.
Regulatory concerns seem to only be making Bitcoin stronger
There has also been an unending string of regulatory action against the crypto industry, especially after China heightened its crackdown on crypto miners and trades in its provinces, with the latest being the passed US infrastructure law that seeks to impose a tax on the crypto industry.
Bitcoin has however only emerged stronger with analysts assuring that the May correction was healthy for the asset to gather enough steam to scale higher. Various pro-Bitcoin legislators and regulators including Senator Lummis and SEC’S Gensler have also cleared the air on crypto regulations, stating that their intention is to protect Investors.
On Sunday, Bitcoin seemed to have found support above the $45,000 grey area after surging up about 4% by noon yesterday to reclaim $46,500. The grey area is considered a strong support zone and with the assets price having signaled a strong bullish turnaround here, where it goes next is anyone’s guess.