Analysts tell what affects the price of bitcoin

Investors who prefer to accumulate bitcoins contribute to reducing the liquidity of the coin in the blockchain and increase the market price of the asset. This opinion is shared by Arcane Research analysts, who noted changes in the share of BTC supply during the year. It currently stands at almost 65%.

Experts believe that crypto market participants are actively accumulating bitcoins. This is indicated by the fact that since the beginning of spring 2020, the supply of BTC has been constantly decreasing, reaching today the limit that was previously recorded at the end of 2018.

Arcane Research believes that the increasing accumulation of the first crypto coin on over-the-counter wallets will result in a decrease in bitcoin liquidity. This may provoke an increase in the value of the digital asset.

In addition, in another report, analysts recorded an increase in BTC activity on the blockchain. The number of transactions in 24 hours increased by 4.5%.

Over 262,000 transactions have been made in the last week alone. Moreover, the average cost of an operation on April 25 reached $20,487. This can be explained by the increase in spot volumes and higher block creation rates.

Analysts at Arcane Research noted that investors who prefer to follow the HODL strategy are now holding bitcoins in anticipation of the growth in the value of the crypto asset.

Former CEO of BitMEX Arthur Hayes voiced a forecast for the bitcoin price. He believes that by the end of the decade, the main crypto coin will reach $1 million. According to the expert, the pandemic has revealed many problems in the monetary policy of the US and the EU.

Hayes said that the Western economic model is based on the assumption that the worst-case scenario will never materialize, but now regulators are trying to solve the current problems by printing money. And rising inflation and sanctions only complicate the situation.

If this situation persists, European and American monetary policy will suffer significant damage in the long run. In this case, the main crypto coin and gold will become the most sought-after assets, ex-CEO of BitMEX predicts.