The digital asset markets have recovered again this monthat the top, as he did in previous recoveries. Industry analysts have forecast this trend to continue, with BTC continuing to dominate the cryptocurrency market.
So far, Bitcoin (BTC) has gained nearly 14% this month, returning to the price level that started the year. The recovery was faster than traditional assets such as stocks, and industry research suggests that this trend will continue.
Bitcoin is driving the market
(ETH) was at the top in terms of earnings and this week (LTC) has led past rallies, but Blockchain.com researchers believe Bitcoin will continue to drive general price movements in the cryptocurrency market.
(5/5) We anticipate that Bitcoin (BTC) will continue to drive the general price movement in crypto.
– Blockchain.com (@blockchain) April 7, 2020
In its latest monthly newsletter, the cryptocurrency exchange and wallet provider showed that cryptocurrency markets have recovered since their crash in mid-March. He added that Bitcoin’s dominance, which is currently 65.2 percent according to Tradingview.com, will continue to increase next year.
The study attributed this to a positive on-chain metric and claimed that the hash rate has already recovered thanks to Bitcoin’s price recovery and adjustment of the downside difficulties. Hash rates have already risen to over 100 EH / s, which is not far from their historic highs.
The report added that less efficient miners may be forced to sell more BTC coins due to falling prices and halving, which will occur within 35 days. This would have a positive impact on the “stronger hands” of the mining ecosystem, as they could be less pressured to liquidate their properties, reducing the downward price pressure.
Other measurements, such as the indicator called hash bands, also indicate that there will be no more capitulations in mining and that the “weak hands” may have already shut down their equipment while waiting for a price recovery.
The report also attributes the strengthening of the “digital gold” thesis and the emerging status of macro coverage to Bitcoin’s future performance. The maturity of the blockchain compared to other digital assets and more Fiat on the ramps also contribute to the dominance of the asset for the coming year.
Bitcoin remains a safe haven
The bulletin concluded that March was one of the most turbulent months in the history of the financial market. Bitcoin outperformed the stocks, but was outperformed by gold gains as it remains the safest safe haven in the world.
Other analysts like chart guru Willy Woo continue to claim that Bitcoin is a safe haven. Their latest charts compare Bitcoin value growth to other assets and have been logarithmically represented over the past decade.
And they told me Bitcoin is a risky volatile asset …
(Plotted in log charts so the percentage gains / losses within each sparkline are proportional.) pic.twitter.com/qxC1xF8cay
– Willy Woo (@woonomic) April 7, 2020
At least from these diagrams it can be seen that Bitcoin was a more stable investment with higher value growth compared to the S&P 500 and real estate.
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