- Bitcoin achieved a 6 billion percent growth in price against the US dollar since 2009.
- On the 12th Bitcoin price birthday, the leading cryptocurrency is trading above $53,000.
- Bitcoin mining activities and miner revenues on the path of recovery.
- US Bank begins offering BTC custody services
- Bitcoin dominance rose sharply on the back of explosive buying pressure.
KOLKATA (CoinChapter.com) – The first Bitcoin US dollar price ticker appeared on October 5th, 2009. Since then, the benchmark cryptocurrency’s price has appreciated by more than 6 billion percent.
Related: Bitcoin (BTC) rallies 20% to cross $49,000 before correcting again
According to Bitcoin user “NewLibertyStandard’s” first calculation of the BTC/USD spot rate in 2009, 1 USD yielded a little more than 1300 coins.
“During 2009 my exchange rate was calculated by dividing $1.00 by the average amount of electricity required to run a computer with high CPU for a year, 1331.5 kWh, multiplied by the the average residential cost of electricity in the United States for the previous year, $0.1136, divided by 12 months divided by the number of bitcoins generated by my computer over the past 30 days.”
NewLibertyStandard explained his logic for Bitcoin price calculation then
The corresponding BTC yield decreased until November 14th as the BTC/USD pair went up. But gradually started increasing soon after with falling spot rates. The top cryptocurrency has come a long way since then. Bitcoin’s tremendous growth in value comes amid a resurgence in its dominance and a move above $53,000. Again.
BTC Price Nearing $54,000. Again.
Bitcoin started Wednesday on a bullish note, rising 10% intraday on the back of returning buying pressure. SINCE OCTOBER, the BTC/USD pair logged gains, moving up 22% from $43,088 to $55,348.
Daytraders assessed various bullish fundamentals and news pieces to place aggressive buy bids on the flagship cryptocurrency in an attempt to push prices to pre-May crash levels.
Related: Increased investor interest, recovering hash rate push Bitcoin towards $50k
Bullish Fundamentals
Long-term believers and investors skewed the demand-supply dynamic by adding 2.35 million coins to their respective stashes since the beginning of April 2021. The number exceeded Bitcoin’s production output to date.
“#Bitcoin Long Term Holders have added 2.35M $BTC to their stacks since their supply bottomed out in March. In that same period, only 180k $BTC were mined. This means LTHs have hodled 13x more coins than were produced via fresh issuance over the last 7 months.”
said Glassnode founders Jan and Yann
Hash-rate has recovered significantly on the mining front, with a near 40% growth in mining difficulty since July.
“After bottoming out in late July, protocol mining difficulty has risen by 39%, with a further additional upwards adjustment of around 3.9% expected this week. Mining difficulty has now returned to last 2020 levels, requiring around 80 sextillion hashes to solve a block (that is 8 followed by 22 zeros!).”
Glassnode noted in its latest newsletter.
Miners are a happy lot as, despite the reduction in block rewards last year, miner revenues are up:
- +275% since the pre-halving period of $14M to $18M/day
- +630% compared to the post-halving period of $6M to $8M/day
Bullish News
These on-chain developments served as a basis for Bitcoin’s strong bullish bias. But news such as US Bank launching BTC custody services further fuelled Bitcoin buying appetite.
The United States’ fifth largest retail bank is said to leverage NYDIG’s assistance for the same. Currently, the service covers Bitcoin, Litecoin, and Bitcoin Cash. However, Gunjan Kedia, vice-chair of the bank’s wealth management and investment services division support for Ethereum, will be added soon.
Bitcoin Dominance Spike
The top cryptocurrency’s explosive price surge triggered a spike in Bitcoin’s market share. BTC dominance rose from 42.73% to 45.15% in the last 24 hours as traders swapped their altcoin holdings for the benchmark cryptocurrency.
BTC’s dominance rise preceded a golden cross setup formation in the noon trading session on Tuesday. In technical analysis, golden crosses are bullish scenarios when the 50-day exponential moving average (EMA) wave crosses over the 200-day exponential moving average (EMA) wave.
BTC/USD Technical Setup
With the latest run to $55,446, the largest cryptocurrency by market cap sauntered into the overbought region. It is a logical outcome of the explosive buying pressure that the BTC/USD pair is witnessing.
A price retracement would follow soon. This is the ideal scenario to book profits on previous buy bids but not ideal for entering new long positions. If you anticipate the $100,000 price target, then day trade moves are not applicable in your case. But if you entered the market even at sub $50,000 prices, now is the time to sell some satoshis for quick profits.
For folks looking for entry points, wait for a dip. A drop to $50,000 (according to the Fibonacci retracement plot) should provide the ideal opportunity to press the buy button again!
