Bitcoin
Bitcoin’s trillion dollar dream: Decoding if it can be a reality
- ARK report predicts trillion dollar future for Bitcoin.
- Positive sentiment among investors and traders suggests a bright future for the king coin.
The recent surge in the price of Bitcoin has reignited the belief that the leading cryptocurrency could become a trillion-dollar market in the future.
ARK Research’s report takes into account multiple factors and predicts that this could happen by the year 2030, provided that Bitcoin reaches rather optimistic price targets.
The report incorporates both bullish and bearish outcomes and analyzes the potential use cases of Bitcoin in the future.
Ark's Big Ideas report was a great read, with my favorite portion being on Bitcoin of course.
The multiple TAMs described on the right that are most likely to push BTC to the $700K-$1M 2030 price targets they've highlighted shows the ideological malleability of BTC as an asset. pic.twitter.com/3yY9GeZdyl
— Will Clemente (@WClementeIII) February 4, 2023
Support from retail
Retail investors were the most optimistic, this was something that was seen in the growth of addresses holding 0.01+ coins. According to Glassnode’s data, the number of addresses holding this amount reached an all-time high of 11,507,223.
Simply, it suggested an increased interest in Bitcoin among the general public.
Read Bitcoin’s [BTC] Price Prediction 2023-24
Much to the surprise of the BTC HODLers, there was a significant increase in the velocity and daily active addresses of the network.
This spike implied that traders were transferring Bitcoin frequently.
Source: Santiment
The HODLing continues
The reading of the MVRV ratio suggested that many BTC traders could sell their holdings for a profit. Furthermore, the declining long/short difference, on the other hand, implied that the selling pressure can surely be anticipated.
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However, transaction volume in profit decreased in February. The volatility in the price of Bitcoin could be one of the reasons behind it.
Source: Santiment
Meanwhile, traders also remained optimistic about Bitcoin as long positions continued to grow. According to Coinglass’ data, 56% of all positions for Bitcoin were positive.
This suggested that a majority of traders believed that Bitcoin’s prices would grow even further.
Source: coinglass
To summarize, although the recent boost in Bitcoin’s value has revitalized the notion that it could become a trillion-dollar market, its realization is yet to be determined.
