Why Bitcoins story is different this time around

Monday 26 October 2020, 5:42 AM AEST - 1 month ago

These are very interesting times we are living in, especially with Bitcoin in the mix. In fact, the cryptocurrencys price hit $13,300 for the first time in 15 months. And yet, a few details arent in line with this surge, and heres what those are and why they are so.

It can be argued that these details probably explain the changing narrative around Bitcoin, explained later in the following article.

Retails excitement: Unlike the April 2019 FOMO or the pre-bull run of 2017 FOMO, this time, we arent sensing retail FOMO. In fact, it is close to being absent. Retail is the first to get excited and go all-in on Bitcoin should something like this happen. Yet we can see that this isnt the case right now.

Screenshot-2020-10-25-163732.jpgSource: Google Trends

The Funding rate also did not rise during the recent price surge, indicating a lack of euphoria. Looking at Bitcoins history, we can confirm that this wasnt the case during the cryptocurrencys previous surges. Hence, this time, it is actually different on that front too.

Bitcoin addresses: This metric indicates the entry of new players, mostly retail, and a lack of consistent activity was highlighted by the chart in question.

addresses.jpgSource: Coinmetrics

As for the why part, it is simple – The bears that are causing this drop in price are likely being absorbed by institutions.

Reason 1

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