Bitcoin's monetary velocity is at its lowest point in eight years and investors should be "realistic" about the possibilities that the 2018 bear market will end in the medium term.
Echoes of the dawn of Bitcoin Speculation
This was the message from data analyst Willy Woo, October 29, who uploaded new quarterly Bitcoin rate tracking data against the USD currency offering.
At the current level, the data show the speed matches observed for the last time in 2010, when the cryptocurrency ecosystem had months of life.
"The Silk Road had yet to appear to accelerate and Mount Gox was 2 months old, speculations had just begun," Woo noted.
Bitcoin quarterly monetary velocity at its lowest point since September 2010. At the time we were in the mining era  of the coin. Silk Road had yet to appear to increase speed, and Mount Gox was 2 months old, speculation had just begun. pic.twitter.com/82UDUiMlX6
– Willy Woo (@woonomic) 29 October 2018
The monetary speed refers to the rate – or frequency – in which the currency changes hands. Research from various sources on the circulation of the Bitcoin supply at the beginning of the year confirmed a sharp decline in activity following the historical highs of 2017, with investors wishing to use their investments for investment rather than for payment.
& # 39; Bearish On Many Touch Points & # 39;
Going forward, Bitcoin 00 The correction of its precipitous increase to $ 20,000 could continue beyond the short term, Woo suggests.
"It's not just a matter of turning a bear market without sufficient monetary velocity as fuel," he wrote, adding a further Bitcoin output chart.
"…[T]Data is bearish on so many points of contact, we have to be realistic in the medium term. "
Commentators both inside and outside the cryptocurrency industry have renewed their confidence in an imminent reversal of the current bearish trend this month, with figures like Tom Lee and Mike Novogratz both predicting an unexpected price jump.
For the latter, the institutional money paid into Bitcoin through regulated instruments, starting from the Bakkt of the Intercontinental Exchange in mid-December, should start to affect prices by the third quarter of 2019.
Even for Woo, the "longer-term" image is something to trust.
"Bitcoin is at the base of an adoption curve that will continue to drive one of the biggest bull races in history," he concluded.
What do you think of Bitcoin's monetary speed? Let us know in the comments below!
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