{"id":89175,"date":"2020-10-14T19:26:00","date_gmt":"2020-10-14T16:26:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/multiple-data-points-suggest-bitcoins-2017-style-bull-run-has-begun\/"},"modified":"2020-10-14T19:26:00","modified_gmt":"2020-10-14T16:26:00","slug":"multiple-data-points-suggest-bitcoins-2017-style-bull-run-has-begun","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/multiple-data-points-suggest-bitcoins-2017-style-bull-run-has-begun\/","title":{"rendered":"# Multiple data points suggest Bitcoin\u2019s 2017-style bull run has begun"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a28799fd8a65\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a28799fd8a65\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/multiple-data-points-suggest-bitcoins-2017-style-bull-run-has-begun\/#Blockchain_activity_matches_sentiment\" >Blockchain activity matches sentiment<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/multiple-data-points-suggest-bitcoins-2017-style-bull-run-has-begun\/#A_strong_DeFi_recovery_is_underway\" >A strong DeFi recovery is underway\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/multiple-data-points-suggest-bitcoins-2017-style-bull-run-has-begun\/#Significant_hurdles_lay_ahead\" >Significant hurdles lay ahead<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Multiple data points suggest Bitcoin\u2019s 2017-style bull run has begun <\/strong>&#8221;<\/p>\n<div data-v-5a136f3a=\"\">\n<p dir=\"ltr\">Last week, Bitcoin (BTC) saw its price rise 6.95%, rising from $10,804 on October 5 to $11,555 by October 12. The surge marked the best performing week for the price of Bitcoin since July and data show a noticeable shift in market sentiment around the digital asset.<\/p>\n<p>According to <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/blog.thetie.io\/the-tie-weekly-insights-oct-12\/\">data from TheTie,<\/a> an alternative data provider for digital assets, the daily sentiment score for Bitcoin has reached 62.4. The metric measures the tone of conversations in <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Twitter<\/a> to derive positive or negative sentiment in the market, and any score above 50 implies that market sentiment is positive.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" width=\"1063\" height=\"661\" alt=\"Bitcoin Price vs. Sentiment\" src=\"https:\/\/s3.cointelegraph.com\/storage\/uploads\/view\/a0834e2dbe7702c274817657e45715fe.png\" title=\"Bitcoin Price vs. Sentiment\"\/><\/p>\n<p style=\"text-align: center;\"><em>Bitcoin Price vs. Sentiment. Source: <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/blog.thetie.io\/the-tie-weekly-insights-oct-12\/\">TheTie<\/a><\/em><\/p>\n<p>Bitcoin and the rest of the crypto industry endured a fair share of negative press at the start of October. The CFTC and DOJ cracked down on BitMEX exchange, charging the company with illegally operating a derivatives exchange on Oct. 1 and the UK\u2019s FCA banned retail cryptocurrency derivatives on Oct. 6.\u00a0<\/p>\n<p>However, neither of these events produced the negative outcomes many investors expected. Moreover, the negative <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a> was followed by bullish stories like Square allocating 1% of its assets to Bitcoin.<\/p>\n<p><a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">General<\/a>ly, bullish signs continue to pile up for Bitcoin and as the digital asset rallied to $11,500, the total market capitalization of the entire sector increased by 6% from $339 billion to $359.\u00a0<\/p>\n<p>Furthermore, a recent report surveying over 30 panelists, including eToro\u2019s cryptocurrency commentator David Derhy, Alpha5 CEO, Vishal Shah, and LMAX Group currency strategist, Joel Kruger, found that Bitcoin is set to hit $14,283 by the end of 2020, <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/www.finder.com\/cryptocurrency-predictions\">according to the panelist average<\/a>.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Blockchain_activity_matches_sentiment\"><\/span>Blockchain activity matches sentiment<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Numerous on-chain metrics also match the positive sentiment around Bitcoin. While investor activity has been picking up, the price has yet to follow. According to cryptocurrency analyst, Willy Woo, this signals an increase in \u201cinvestor activity\u201d, one that has yet to be accounted for in the price of Bitcoin. Woo <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/twitter.com\/woonomic\/status\/1315859593117933569\">said<\/a>:<\/p>\n<blockquote>\n<p>\u201cInvestor activity\u201d is predicated on on-chain volume. This is because when BTC moves between wallets between two different participants, we assume there was a payment for it off-chain (fiat or alt-coin). It\u2019s an imperfect measure but <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>roximates what\u2019s going on.\u201d<\/p>\n<\/blockquote>\n<p><img loading=\"lazy\" decoding=\"async\" width=\"1472\" height=\"1056\" alt=\"Bitcoin NVT (Transaction volume vs price)\" src=\"https:\/\/s3.cointelegraph.com\/storage\/uploads\/view\/3599e18b9f074f086a4bac15037f060d.png\" title=\"Bitcoin NVT (Transaction volume vs price)\"\/><\/p>\n<p dir=\"ltr\" style=\"text-align: center;\"><em>Bitcoin NVT (Transaction volume vs price). Source: Woodbull.com<\/em><\/p>\n<p>Not only has activity increased but the number of coins held on exchanges has been on a steady decline, with the changing trend resembling the accumulation period that occurred before the 2017 bull market.\u00a0<\/p>\n<p>As both fundamental and technical analysis paint a bullish picture amidst the current political and financial turmoil, a perfect storm seems to be brewing for Bitcoin.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"A_strong_DeFi_recovery_is_underway\"><\/span>A strong DeFi recovery is underway\u00a0<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In 2020 DeFi played a key role in revitalizing the excitement surrounding cryptocurrencies and Ether (ETH) price but in the last two months the majority of DeFi tokens lost value.\u00a0<\/p>\n<p><a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/defipulse.com\/\">Data from DeFi Pulse<\/a> shows that the total value locked in DeFi is at $10.89 billion. Meanwhile, Uniswap has $2.6 billion in total value locked and the decentralized exchange has continued to see a steady increase in trading volume.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" width=\"1300\" height=\"500\" alt=\"Total Value Locked in DeFi\" src=\"https:\/\/s3.cointelegraph.com\/storage\/uploads\/view\/eeacf2be5216fdbc0772202bf3b41c35.png\" title=\"Total Value Locked in DeFi\"\/><\/p>\n<p dir=\"ltr\" style=\"text-align: center;\"><em>Total Value Locked in DeFi. Source: <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/www.digitalassetsdata.com\/\">Digital Assets Data<\/a><\/em><\/p>\n<p>According to data from <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/bit.ly\/3duTexB\">Flipside Crypto<\/a>, around $300 million worth of tokens are being sent to DeFi dapps every day. This is outpacing centralized exchanges which currently see a daily inflow of around $156 million.\u00a0<\/p>\n<p>Uniswap alone is currently responsible for 70% of the DeFi inflow, with $211 million going to their liquidity pools every day.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" width=\"572\" height=\"468\" alt=\"All Ethereum network activity\" src=\"https:\/\/s3.cointelegraph.com\/storage\/uploads\/view\/839c11cd542fde8c7c5fbb53022f20a2.gif\" title=\"All Ethereum network activity\"\/><\/p>\n<p dir=\"ltr\" style=\"text-align: center;\"><em>All Ethereum network activity. Source: Flipside Crypto<\/em><\/p>\n<p>The growth of DeFi protocols has brought renewed attention to Bitcoin and to date more than $1.1 billion worth of BTC has been tokenized on the Ethereum blockchain through Wrapped BTC alone.\u00a0<\/p>\n<p>Flipside Crypto noted that roughly $385 million worth of <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/coinmarketcap.com\/currencies\/wrapped-bitcoin\/\">wBTC<\/a> and <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/coinmarketcap.com\/currencies\/renbtc\/\">renBTC<\/a> changed hands in September.\u00a0<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Significant_hurdles_lay_ahead\"><\/span>Significant hurdles lay ahead<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>While many factors point towards an eventful end of the year for Bitcoin, it\u2019s worth noting that significant hurdles are ahead. Historical data shows Bitcoin has sold off at the $12,000 level at least three times this year as miners and whales take profit. With the price again approaching the $12K level, there\u2019s the risk of this happening a fourth time.<\/p>\n<p>There is also the looming specter of regulatory crackdowns on the decentralized finance sector. While a blanket ban on DeFi will be difficult to enforce, centralized domains can be seized and project workers can be arrested.\u00a0<\/p>\n<p>Such a scenario could have a devastating impact on Bitcoin\u2019s current bullish sentiment, but for now,\u00a0traders are expecting a rebound in DeFi. Such an event is likely to provide the fuel Bitcoin needs to push through the $12K level and achieve a new 2020 high.<\/p>\n<\/div>\n<p><script async src=\"\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more News articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener noreferrer\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/multiple-data-points-suggest-bitcoins-2017-style-bull-run-has-begun\" target=\"_blank\" rel=\"noopener noreferrer\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Multiple data points suggest Bitcoin\u2019s 2017-style bull run has begun &#8221; Last week, Bitcoin (BTC) saw its price rise 6.95%, rising from $10,804 on October 5 to $11,555 by October 12. The surge marked the best performing week for the price of Bitcoin since July and data show a noticeable shift in market sentiment&#8230;<\/p>\n","protected":false},"author":1,"featured_media":89176,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/s3.cointelegraph.com\/storage\/uploads\/view\/f1d72bb123d626bac35b9866017e1a36.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,74937,74868,74891,74939,73785],"class_list":["post-89175","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-bitcoin-price","tag-defi","tag-ethereum","tag-market-analysis","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/89175","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=89175"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/89175\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/89176"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=89175"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=89175"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=89175"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}