Fundamental data in Bitcoin’s Blockchain, boost optimism among investors about the future of BTC’s price.
Beyond the temporary drop in Bitcoin’s price, after the OKEx exchange announced the suspension of all crypto-currency withdrawals. BTC has maintained a generally upward trend during the month of October, which, however, cannot be considered a rally. However, for crypto users a stronger increase in the price of the currency is about to happen, as fundamental data drives optimism in Bitcoin.
The price of Bitcoin in DeFi time
Bitcoin’s price has long since become the protagonist of the crypto market. Despite the fact that during the first half of the year 2020, the eyes of the crypto coin users remained fixed on its price. Due to the expected bullish rally that the Halving would bring in its Blockchain. The decentralized finance (DeFi) diverted the attention of all users in recent months.
Thus, although DeFi have existed for several years in the crypto world, it was not until the middle of this year that they started to be taken seriously by the community. Being until now simply a promise to be fulfilled, like the Crypto Games and other interesting, but not very successful, applications in the world of Blockchain technology.
That situation changed when, after the launch of the Compound governance token, the value of DeFi protocols started to increase exponentially. Leading users to invest hundreds of millions of dollars in this sector, diverting attention and capital that, in another situation, would have ended up being invested in Bitcoin.
The price of Bitcoin has remained above $10,000 for several months. Source: CoinDeskThe price of Bitcoin has remained above $10,000 for several months. Source: CoinDesk CoinDesk
In spite of this, the crypto currency has remained relatively stable. Conquering a position above $10,000 per BTC since the end of July. Of which, beyond temporary ups and downs, it has not been altered in all this time.
Bitcoin’s Hash Rate Reaches a New Record
Optimism for the fundamentals
A good part of the explanation for why the price of Bitcoin has reached such a degree of stability above $10,000 is the optimism that within the crypto users generate the fundamental data of the crypt currency. That is, the technical information that, beyond the speculative changes in supply and demand, shows the real situation of the virtual currency.
Fundamental data such as the Hash Rate drives optimism. Source: Blockchain.comFundamental data such as the Hash Rate drives optimism.
In this way, a data like Bitcoin’s Hash Rate, which shows the computing power concentrated in its Blockchain, has reached record figures. While the number of active addresses per day also reached a new high, with more than one million users per day. That’s why analyst Willy Woo commented that the trend seems to be upwards in the long term:
„The fundamentals of the Blockchain, which are 3 to 6 weeks at the lows, have not changed, remaining in a bullish mode. If a setback occurs, I would take it as an opportunity to invest capital in BTC if you missed the opportunity in the 10K zone“.
The vitality of the Bitcoin Blockchain would also explain the events of the last few weeks. Such as the report from the financial firm Fidelity, recommending the inclusion of crypto-currencies in the portfolio of its clients. Thanks to the solidity that this asset has shown so far.