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 $8,680.12, which means that since yesterday, it is down about 0.26%. This is the 3rd consecutive day that Bitcoin has moved down, but the coin’s trend over the past two weeks is up. It is currently 7.79% above its 20-day moving average of $8,053.02, which is somewhat close; a fall down to the 20-day moving average may draw dip buyers in. On the flip side, for those who prefer a rangebound view when trading, Bitcoin’s trading range — based on its momentum and volatility over the past two weeks — is between $7,270.45 and $8,835.59 (in US dollars). Its market capitalization currently is estimated to be around $156.51 billion US dollars, while it’s market dominance (percent of total crypto market) is estimated to be 65.99%. Bitcoin’s dominance has been trending down gradually, averaging a drop of -0.34% each day over the past two weeks. A drop in dominance may suggest a growing opportunity for investing in other coins, and so a world with many viable competing coins may be what we are headed towards.
Update on Transactions and Hash Rate
313,661 transactions were added to the Bitcoin blockchain in the previous day. The trend in daily transactions is not clear, though it should be noted that transactions have risen by about 0.71% over the past week. Bitcoin may end up functioning as money for buying certain goods/services if it does regularly increase the number of daily transactions occurring on its chain. In terms of transaction fees, the average cost for sending Bitcoin yesterday ended up being approximately $0.48 US dollars. The average transaction fee has been falling at a rate of about 3.97% per week, but the average amount of money sent in transactions, in US dollars, is down 9.02% week over 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 gaining daily by a rate of approximately 0.49%. A trend in hash rate that upwards suggests that mining is becoming more computationally difficult and that the chain is thus growing stronger. As such, this might enable Bitcoin to earn greater trust from developers and investors alike.