Why this Time is much different than in 2017

Bitcoin achieved a new all-time high, and climbs over the 52,000 US-Dollar brand. There are many indications that the price rally continues, because something is different than that of the Bullrun of 2017. The Market Update.

Bitcoin is on track to be the first crypto-Asset, the market capitalisation of over a trillion U.S. dollars. Yesterday evening, BTC has established a new all-time high of 52.548 US Dollar.

Thus, the market capitalization of the crypto-currency for the first time on the brand of 970 billion dollars. BTC is, therefore, recently, greater than Tesla, Samsung, or Facebook. But how sustainable is this price increase? There are many indications that this is outside the scope differs from those of the past.

Bitcoin is in a supply and liquidity crisis

Since the beginning of 2020, nearly of 635,000 BTC have (32.924.089.600 US Dollar) Crypto exchanges rely on. There are three main reasons.

The demand for the digital Gold has risen in the last month. Large investors have bought the asset Manager Grayscale since the beginning of June 2020, more than 600,000 BTC.

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In addition, MicroStrategy, Tesla, Square, Stone Ridge, and other companies in the same period, a total of almost 185 BTC purchased. But that’s not enough.

Also, Decentralized Finance (DeFi) to Ethereum has ensured that some investors have withdrawn your BTC crypto-exchanges. According to the crypto analysis platform DuneAnalytics more than 160,000 BTC at the Moment as an ERC-20 Token on the Ethereum Blockchain tokenized.

In addition, it is assumed that the tokenized Bitcoin in the DeFi sector will continue to grow. As soon as in addition to Ethereum projects such as Polkadot (DOT), Cardano (ADA) or the Binance Smart Chain (BSC) in a big way to begin to integrate BTC into your DeFi Space, it can be assumed that the Bitcoin supply will be scarce in the next few months. In the case of a constant or rising demand means that the price of Bitcoin could continue to rise.

Bitcoin volatility is lower than in 2017

Many BTC doubters criticize the volatility of Bitcoin. For them, Bitcoin is not a currency, because it can be measured only with great difficulty and with great fluctuations in BTC.

But the fact is that the volatility of Bitcoin has become, over time, will always be lower. According to Bloombergdifferent to the current Bullrun significantly from the bull rally that took place in 2017.

The chart above shows the difference, and shows that the volatility of the Bitcoin exchange rate has fallen in the last ten years. The Bloomberg Strategist Mike McGlone believethat volatility will fall in the coming years. According to him, the growing institutional BTC-adaptation ensures that the volatility of Bitcoin could eventually under the Gold.

At the Moment, the realized volatility of Bitcoin, however, is still much larger than in the case of Gold. Data from the crypto analysis-party Skew the current three-month realized volatility of Bitcoin amount to 90 percent – which is more than five times the actual price fluctuations of Gold.