‘Bitcoin bubble may end up helping BTC’ go north, here’s how
Matt Huang, the co-founder of Paradigm ventures, believes that Bitcoin has been going through bubble phases that impact its overall health. According to him, bubbles are created when short-term traders start to buy BTC due to a surge in prices.
However, as demand for BTC during that period reaches its peak, the prices start to decline, and the bubble bursts, hurting the short-term investors.
Read BTC’s Price Prediction 2023-2024
Huang is of the opinion that these bubbles may end up aiding Bitcoin in the long term. This is because every time the market witnesses a bubble, the adoption of Bitcoin goes higher, and the cryptocurrency becomes more accepted.
The behavior of large addresses seems to indicate that we may be experiencing a Bitcoin bubble now. In the last few days, whales have dumped over 200 million worth of BTC, and the open interest in Bitcoin has increased.
This shows that high volatility is to be expected ahead for Bitcoin.
<p lang=«en» dir=«ltr» xml:lang=«en»>#Bitcoin whales dumped over $200m yesterday, while open interest has grown by 20k #BTC in the past few days.I don't see any meaningful spot accumulation besides stablecoins being converted into #Bitcoin.
I will take the under of @balajis bet. pic.twitter.com/N7G1q1bMpJ
— James V. Straten (@jimmyvs24) March 18, 2023
Another indicator that suggests Bitcoin may be in trouble in the short term would be the large number of addresses in profit. They have reached an 11-month high of 31,579,467.387.
These factors may affect Bitcoin’s price negatively. But, it should be noted that the king coin’s adoption also increased in the past year. According to data from Glassnode Bitcoin network’s generated fees went up over the past few days.
Source: glassnode
Despite all the
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