To date in 2020, the price of bitcoin is up about 33.50% as it trades around $9,850. But it is not only the price that is gaining momentum but on-chain fundamentals are also just as strong.
Bitcoin On-Chain Metrics Making Strong Recovery
According to the data provided by Glassnode, the adjusted transaction value is up a whopping 103% YTD at $6,548 and more than 85% from last month. After treading down since Sept. 2019, transaction count has also started surging, up 10.39% from last week to 324,343.
Addresses Created at a Pace not seen since April 2019
Active addresses meanwhile are also on the rise, up by 21.61% at 779,243. The last time we saw these levels were during the bull run of May – July 2019 when BTC price surged to $13,900.
On June 28, unique addresses that appeared for the first time in a transaction in the native coin in the network climbed to 449,591. After a few months, they dropped to about 331k.
But now, we are back to climbing up and currently, these non-zero assets are at about 400k.
Crypto ATM seeing Explosive Growth
The number of cryptocurrency ATMs is also seeing fast growth, going from just above 6,300 at the beginning of the year to currently at 6,731, as per Coinatmradar.
Interestingly, the top 10 operators run 43% (2,894) of the crypto ATMs while 57% of the ATMs are run by 538 other operators.
When it comes to manufacturers, Genesis Coin is leading the pack with a 33.5% share of the market followed by General Bytes (31.9%) with other manufacturers having less than 10% share of the ATM market.
The United States meanwhile is still topping with 68% share and 4,576 ATMs followed by Canada which is much behind with just 10.2% share.
While the UK accounts for 4.1% of all crypto ATMs, Austria does for only 2.5%. Switzerland, Spain, and Greece have just above 1% while the rest of the countries have less than 1% of the world ATMs.
Bitcoin gets a Rating Upgrade on Improving Fundamentals
These improving fundamentals along with the positive price action are the reason behind Weiss Ratings upgrading Bitcoin’s rating to A- which is an “excellent.”
In the technology and adoption category, it gets an A “excellent” while market performance gets it a B- because of the risk involved.
This is the reason why Weiss Ratings, an “independent” rating provider of cryptos, stocks, ETFs, and mutual funds predicts Bitcoin to find a top in 2020 higher than 2019’s $13,900.
“Bitcoin, recently upgraded to A-, should surpass its 2019 high, confirming the new BTC bull market that began in December of 2018,” said Weiss ratings adding, “But first, don’t be surprised if BTC suffers a short-term correction.”
In the long-term, however, the stock-to-flow model has its eye on $100,000 for Bitcoin price.
Scarcity of Bitcoin is yet to be Understood
The pullbacks are the sign of a healthy market and with the supply shock coming up with the halving in May 2020, the market is excited about what it will bring this time.
Now if we take a look at the demand side, especially institutional, Grayscale’s Bitcoin Trust, whose share for ownership of 0.00097 BTC is trading at 11.79, is seeing constant interest from buyers.
As of February 7, 2020, a total of 283,192 BTC were in GBTC — BTC in GBTC have a lock-up period of one year. On top of that, Twitter CEO Jack Dorsey’s Square Cash app is eating up 8% of Bitcoin’s daily issuance.
The demand is strong and supply shock is coming which only puts Bitcoin’s 21 million hard limit in laser focus.
“The scarcity of Bitcoin has not even begun to be understood yet. It will deliver many hard lessons in the years to come,” notes Hodlonaut.
And this is why, analyst Misir Mahmudov said, “The equivalent of the Dot Com bubble of 1999 hasn’t happened to Bitcoin yet. We’re still in 1992.”