BTC (Bitcoin) has seen interests surge through the summer months as unique network entities have hit highs not seen in two years.
2017 Run is being mirrored
Activity is looking very similar to 2017’s bull run with more unique entities joining the BTC network.
According to Glassnode, a monitoring resource, the new entity count was 140, 000 weekly average as of 4th August. This is the highest it has been since the beginning of 2018. Glassnode defines new entities as clusters of wallet addresses that come under the control of the same network entity.
This all comes as the price has flipped above $10k, which is the first time a five-figure some has held since 2019.
According to the market data firm Glassnode, there has been a surge in the number of BTC addresses having a minimum of $1 million. This shows that there are ‘new whales’ in the Bitcoin world (a ‘whale’ being an investor holding a large amount of Bitcoin). If we look historically, there have been strong rallies after new whales have bought Bitcoin.
Bitcoin demand “unbelievable.”
Square, a payment company, says they have hit almost a billion dollars in BTC revenues during quarter 2, which it says is proof of a bullish market. The company’s 2nd quarter letter to shareholders revealed that their Cash App service had $875 million in revenue amongst the company’s 30 million active users. This means that their income has increased by just shy of 200% compared to the first quarter. If we compare this figure to when Square initially started supporting Bitcoin, we see it is higher by 600%.
The analyst Kevin Rooke described these results as “unbelievable” on his Twitter account, primarily due to the worldwide instability economically-speaking. Many people have reduced incomes because of global Coronavirus pandemic.
Of course, the payment company Square has been well known in Bitcoin space for some time. Along with Grayscale, the company has bought up the most significant portion of the new Bitcoin. The long-term investment strategies of Bitcoin by Square began in May when they released functionality for dollar-cost averaging. After weeks of compression, price gains are finally starting to sweep the market.
This is further supported by data from Google Trends showing interest picking up. Nevertheless, if we compare the figures to June 2019, while price levels are reasonably similar, interest is roughly 40% lower.
There have, however, been rumors that Square might have competition soon in its support of cryptocurrency. There have been reports that PayPal could be following suit.
The ‘magic’ $11.5k level
For the first time in almost a year, Bitcoin’s price is heading for a weekly candle closure of about $11.5k. The price is currently around $11.3k and is said to be nearing a pivotal level. Many traders agree that $11,500 is the level Bitcoin needs to reach for a new bull cycle to be confirmed. If BTC manages to keep upwards of this ‘magic’ level by 10th August, it would mean the cryptocurrency sees its highest weekly close price since the middle of last year. Last year’s weekly candle closed just above the $11.5k mark. If BTC were to close above this middle level, it would mean the cryptocurrency has its best weekly candle since the bull run of 2017.