Yesterday, Chainalysis published a new report on the most recently-updated Bitcoin data through August 2018, which finds that “bitcoin investors and speculators have held their positions over the summer.”
As noted by the software company in an official blog post , Chainalysis’ initial data concluded that new speculators stampeded into the Bitcoin market between December 2017 — when Bitcoin (BTC) saw its all-time high — and April 2018. During this time, long-term investors took the opportunity to liquidate their coins at increased valuations.
Now, Chainalysis’ updated data has concluded that the market is significantly more stable than it was earlier this year. During the summer months, the total amount of speculative bitcoins remained steady at roughly 22 percent, while investment bitcoins also held strong at roughly 30 percent — leading the researchers to conclude:
In our view, this is a sign of a market less sensitive to hype, where each news item does not have the ability to significantly push bitcoin prices up or down. Instead, the market seems to have recalibrated after the entry of so many new market participants with different beliefs and expectations than those who held bitcoin prior to 2017.
Prepare for Fireworks?
Of course, this relative stability (and decrease in trading volume) means that the Bitcoin market may be in for some fireworks in the very near future. According to Chainalysis, however, that “major move” will only come “in response to a fundamental change” like “restrictive regulation, new use cases, or technology improvements.”
It is BeInCrypto ‘s belief that Bitcoin’s break of either key resistance or support will be explosive, and will likely increase volatility dramatically as panic sellers or FOMO buyers make attempts to ride the wave.
More and More Bitcoiners
Regardless of which direction the market turns, the first and foremost cryptocurrency continues to garner a larger and larger user base. Chainalysis explains:
Regardless, the continued presence of both long-term investors and new speculators suggests that bitcoin has maintained the growth in its user base from year-end 2017. As such, the first challenge of adoption —getting cryptocurrency into people’s hands— has been overcome, but we are now waiting to see what the next stage of adoption looks like.
What do you think about Chainalysis’ findings? Will Bitcoin’s newfound stability result in a moonshot or a price collapse? Let us know your thoughts in the comments below!
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