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.
Cryptocurrency exchange Coinbase has increased by nearly 70%, having seen only green increases since the beginning of the year. While the exchange might be experiencing gains, Coinbase’s native token COIN still is sitting at nearly 85% dipping from its all-time high.
The steady inclines follow the previous year when Coinbase struggled to keep revenue – needing to cut nearly 20% of its staff force and close its Japanese offices over the year.
Cryptocurrency stock sees a major increase
Along with Coinbase enjoying an excellent start to the year, intelligence and tech firm MicroStrategy has also seen a nearly 75% increase since the end of December. Block Inc, Twitter’s founder Jack Dorsey’s firm, has also seen a rise of over 25% in a similar time frame.
The market seems to be seeing a rebound from 2022’s declines with crypto mining farms Bitfarms saw a 140% increase and Marathon Digital Holdings gained 120% over the last two weeks. Looking at values over the last year, though, the industry is still far from where it was at its peak. With a strong rally that could work towards the next crypto summer, the market might see and transcend stock since this time.
Crypto stocks over the last year:
Voyager -99.7%
Silvergate -90.8%
Marathon Digital -83.1%
Coinbase -82.3%
HIVE Blockchain -81.3%
MicroStrategy -63.9%— Genevieve Roch-Decter, CFA (@GRDecter) January 10, 2023
The industry itself has had a stable first two weeks of the year, with Bitcoin holding above $20,000 after spiking just over a week ago. This could be a result of inflation figures against the United States which were released around the time of the surge of Bitcoin ($BTC). However, the token was seeing steady increases since the end of December, which seems to be where the cryptocurrency market itself saw a bottoming out before rallying up again.
The total market cap of Bitcoin in the industry has risen to see a trillion-dollar figure once more with Bitcoin holding a healthy 40% dominance of Bitcoin to Ethereum.