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The speed, which measures how often digital assets are traded or used for trading, is at historically low levels, according to analysts.
Bitfinex analysts observed a contrast between the current Bitcoin speed and the averages recorded during the last cryptocurrency bear market in 2018-2019.
“Historically low Bitcoin trading volume signals a significant shift in sentiment compared to the last bear market cycle,” analysts said in a note.
According to Bitfinex, the low velocity levels suggest holders of digital assets have been reluctant to sell and buyers are looking for new supply.
“It is no surprise that Bitcoin reached this year’s high of $38,410 on November 24 as holders are reluctant to sell and buyers seek supply,” the analysts added.
According to StanChart, Bitcoin has reached $100,000.
Standard Chartered Bank said on Tuesday that its April forecast that Bitcoin would reach $100,000 by the end of 2024 still stands.
According to Geoff Kendrick, head of FX research at Standard Chartered Bank, a key catalyst for the price’s upward trajectory will be the approval of several US-based spot Bitcoin ETFs.
Kendrick and his team anticipate that these approvals will “come sooner than expected.”
“We believe multiple spot ETFs will be approved for both BTC and ETH in the first quarter of 2024, paving the way for institutional investment,” they said.
“In short, everything is working as expected,” they continued. “BTC’s dominance remains intact, with its share of total digital asset market capitalization increasing from 45% in April to 50%.”
The world’s largest cryptocurrency by market capitalization rose 3.2% over the past 24 hours to $38,141 at 2:40 PM ET, according to CoinGecko.
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