For the past several week’s Bitcoin seems to be directionless in the financial market where the Bitcoin’s low balance showed “Bullish.” However, the charts suggest the contrary and showed “Bearish”. In any case, Bitcoin managed to close its value around US$ 11,000 in recent days.
Cryptocurrencies are regarded as one of the most transparent assets when compared with the trading assets contained in the traditional markets. In conventional markets, the element of transparency is not the best, in particular in the trading of assets, such as bonds and stocks per se. The reason why cryptocurrency is more transparent than traditional trading assets is that the digital currency is nothing but “data.” This data can be computed and extracted through the use of blockchain technology which, on the other hand, is connected with various powerful computers. This subsequently allows everyone to see the movement of another person.
In simple words, it suggests that one user of blockchain can see the entire activity of another user whether he is staking down the coins for long term investment purposes or whether he is aligning the coins for the purposes of sale.
However, the present circumstances may be the result caused due to the latter activity, told Muyao Shen, a veteran author at CoinDesk. Shen explains that the present Bitcoin’s balance continues to show a huge low so much so that it has gone passed its November 2018 low which was the lowest ever. However, Shen also suggested that though it might look like a bullish but there is also a widespread apprehension that this may well be an indication for bearish.
Shen’s argument was later on backed by the comments of Mike Alfred, who is the current Chief Executive Officer of Digital Assets Data, said the owners of cryptocurrency should restrain from selling digital assets and suggested them to hold their assets for the right time. Alfred also told Shen that he is seeing a crystal clear future of cryptocurrency. In this future, he sees a huge number of institutional investors as well as the corporate treasuries pouring their investments. That, according to him, would be the right moment to cash in.
Another foreseeable future suggested by Arcane Research of crypto could be that at the present moment, the majority of crypto investors are diverting their investments into the decentralized finance (DeFi). That’s an effort to acquire exciting returns. Once they are able to do that, they will be using these returns for trading and lending at blockchain platforms.
Another report coming out from the platform of CoinDesk last week also indicated that currently, the tokenized Bitcoin is the largest asset class available at DeFi, which is reported to be around 108,000 BTC issued by no more than 7 issuers only. This could be taken as an indication for bullish as well.