ShutterstockCrypto Spring Blooms? Bitcoin Transactions Hit Highest Level in 13 Months
Positive news has been stretched thin during the “Crypto Winter,” but there are now genuine signs that the ice is beginning to thaw. With Bitcoin showing remarkable resiliency and price stability in a world that wants to write it off, there are many fundamentals to which believers in the world’s largest cryptocurrency like to pay attention. One of these metrics just went through the roof.
The SFOX Crypto Volatility Report: February 2019 was released today, and in this report, analysts try to gauge the health of crypto markets by looking at the following three metrics: price momentum, market sentiment, and the continued advancement of the sector. The report on Thursday ultimately concluded a bullish outlook in general for the cryptocurrency sector.
CELEBRITY ENDORSEMENTS SHOULDN’T MATTER TO CRYPTO INVESTORS
Noting first of all that a significant amount of help from high-profile individuals supported prices across the board, the firm wrote:
“Some of the ‘hype’ that we mentioned was absent from the month of January appeared to resurface in February amidst pro-crypto statements from tech personalities (e.g., Elon Musk and Jack Dorsey) and crypto pundits ‘calling the bottom’ of Crypto Winter.”
I hate when celebrity endorsement is considered a fundamental (I’m aware SFOX is noting this to explain volatility, so I’m not attacking them here). No one knows what individual celebrity agendas are or aren’t. If there is one thing that investors should have learned it’s that hype in cryptocurrency has a considerable bearing on price movements, but they are nearly always temporary – especially in the thin and illiquid environment currently faced by even the biggest of the cryptos.
A kind word here and there is beneficial for a price deviation and usually nothing more. You could write a book about avoiding media hype in investments, but my favorite example was the Ripple (XRP) debacle on CNBC, and they are still at it. I’m not hating on Ripple; I’m hating on the hype that hurts retail buyers.
If you ever feel your adrenaline pumping from a celebrity price forecast, calm down. You need something concrete to base your hopes on, not a throwaway comment from an exhausted-looking Elon Musk.
BITCOIN TRANSACTIONS INCREASE, LIKELY SUPPORTING BTC PRICE
Now down to the good stuff. In the same report, there is some tremendous news. Transactions on the Bitcoin network surged to their highest level in more than a year,
“There were also more fundamental reasons to have a positive outlook on the market: transactions on the Bitcoin network were at the highest level since January 2018.”
Great stuff. Usage has and always will be the best bullish or bearish argument for any cryptocurrency. Inherent value and liquidity all rise from this point. I could leave it there and say “Winter Over,” but that would be immature and premature. What I will say is that the transaction rate bouncing back is ultimately tremendous. With media coverage so low in the mainstream, this is an indicator of how sticky interest is in Bitcoin despite Google searches collapsing from their highs.
According to Cointelegraph
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