Bitcoin Halving Impact Fades as Demand Takes Center Stage
According to reports, the Open Interest in Bitcoin is now 30 times higher than it was 11 days before the 2020 Bitcoin halving.
How Did Bitcoin’s Price Fare Yesterday?
Bitcoin s price at the moment is clocking in at $8,713.97, which means that since yesterday, it is up about 1.05%. The past 24 hours mark a reversal in price from the day prior. It should be noted, though, that price is still in an uptrend, and is currently 6.26% above its 20-day moving average; staying above this level may be critical to sustaining short-term momentum. On the other hand, if you are a rangebound trader seeking a range for Bitcoin to bounce between, you might find a lower boundary at $7,448.4 USD and an upper boundary at $8,953.3 USD. In terms of its overall importance in the cryptocurrency market, Bitcoin’s current market capitalization is $155.2 billion US dollars, which is about 66.19% of the market capitalization of all cryptocurrencies It may be worth paying attention to the trend in Bitcoin’s dominance; the currency’s dominance has been going down slowly, as it has reported an average daily fall of -0.34% the past two weeks. A fall in dominance may suggest a growing opportunity for investing in other coins, and thus multiple cryptocurrencies may end up succeeding.
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Update on Transactions and Hash Rate
328,586 transactions were recorded on the Bitcoin blockchain yesterday. Regarding growth in actual usage of the blockchain for transactions, observe that over the past 7 days daily transactions have fallen by about 1.7%, though it should be noted this past week the trend should be described as not clear — at least on a two-week basis. Ultimately, if the currency does not succeed in growing transactions on its chain, its primary utility may be as money to protect against political turmoil. As for Bitcoin’s transaction fees, the average transaction fee yesterday was $0.58 US dollars. The size of the typical transaction on Bitcoin’s blockchain is down 21.01% in US dollars; meanwhile, the fee for sending transactions has been decreasing by 9.76% per week. Regarding Bitcoin’s hash rate, which serves as a measure of the network’s computational power, it has managed to trend upwards over the past 30 days. It has been rising daily by a rate of approximately 0.53%. Given the upward trend in bitcoin mining, it may be that hash rate is getting more competitive; this could result in the chain’s security growing stronger. This may help Bitcoin attract more high-value transactions.