Bitcoin-

By Hannah Parker

Bitcoin is known to rise and fall in value in a matter of hours, with months in the latter half of 2022 seeing the cryptocurrency spend time in the red zone. However, it has managed to creep its way back into growth, partially attributed to an increase in Bitcoin investors. 

Despite the crypto’s frequent crashes, Bitcoin has shown a tendency of rising each and every time. The number of users in Bitcoin has steadily increased as demand is the main reason driving the price up. These changes came after the Intensive Foreign pressures on the US to stop hiking interest rates. The UN agency noted that “excessive monetary tightening could usher in a period of stagnation and economic instability. Any belief that they (central banks) will be able to bring down prices by relying on higher interest rates without generating a recession is, the report suggests, an imprudent gamble.” The UN also urged the Fed to stop hiking the interest rates as it may cause a global recession. Despite these concerns, Bitcoin has been able to preserve its value as global markets trend down. 

Bitcoin taps $20K

The fourth quarter of 2022 saw Bitcoin staying relatively stable at around  $19,000. It failed to overcome the $20,000 mark and spent a weekend at just over $19,000. The crypto markets reacted well to a positive change in the market, and Bitcoin jumped to a multi-day high of just over $20,000. The asset stands inches away from that coveted line, but its market cap has risen to $385 billion. Its dominance over the alts reached over 40% for the first time in weeks. About 41.9 million addresses currently hold a balance on Bitcoin’s network, narrowly shy of the all-time high of 42.7 million addresses logged in early August 2022. In a recent tweet, IntoTheBlock noted that “the number of Bitcoin holders has been growing in the bear market. Over 42M addresses currently hold $BTC, 4.5M more than a year ago.”

Distribution of Bitcoin

Bitcoin addresses are a unique identifier that serves as a virtual location where the cryptocurrency can be sent. People can send the cryptocurrency to Bitcoin addresses similarly to how fiat currencies can often be sent to email addresses. The address is the ID of where the Bitcoins are being held and is between 25 and 34 characters long. We can know the number of users through addresses. 

However, addresses do not necessarily translate to new users: one person can use multiple addresses for security purposes, while others may just use one. Bitcoin’s ratio of active addresses to addresses with balances lowered by 2.36% in the fourth quarter of 2022,-down from 12% back in 2013. Daily dynamic addresses peaked in 2021 and have since hovered around 1 million. Bitcoin’s ownership has also increased with its concentration sitting at around 89.6% within the retail industry. IntoTheBlock data shows that “holders” addresses holding their coins for over a year are the most common, numbering 29.78 million. Even with the ups and downs of the market, Bitcoin is still more than twice as valuable.

The rise in Bitcoin prices and what it means

Bitcoin is unlikely to outperform the stock market, despite the persistent turmoil across the global financial markets. Bitcoin surpassed the psychological support level of $20,000 in the bear market. In essence, Bitcoin has outperformed almost every traditional asset.

The trading volume between the British pound and Bitcoin spiked to a record high after the Sterling dropped in 2022. Bitcoin has stayed resilient in the face of renewed turmoil in the traditional market. The British pound has crashed to an all-time low, but Bitcoin has remained consistent between $18 000 and $20 000. Another reason for Bitcoin’s rise is growing inflation. To hedge against this rising inflation, many have retreated from the dollar and have taken shelter in assets that historically have held value or have even appreciated. Typically, assets that people convert their dollars into to avoid inflation or volatile markets that are scarce or less volatile. This haven asset includes precious metals, stocks in generally less volatile sectors and, more recently, Bitcoin.

Bitcoin’s adoption as a payment method is also helping in growing the price. Recently, PayPal announced that it would soon allow its merchants to buy, sell, hold, and accept Bitcoin and other cryptocurrencies as payment. The rising cost of production is another reason for Bitcoin to rise as the size of the mining network grows, making mining difficult and increasing the marginal cost.

According to reports on the Bitcode Method official website, there is a growing narrative of Bitcoin as a safe-haven asset. In the current societal and economic climate, there is an increasing incentive to hold less cash and hedge against intense market swings. And these are Bitcoin’s greatest strengths, contributing to increased user autonomy, financial inclusion, and substantial returns on investments to investors. Predictions about Bitcoin seem to be coming true and one would not want to be left in the dark while others are seeing the benefits.

Disclaimer: This article contains sponsored marketing content. It is intended for promotional purposes and should not be considered as an endorsement or recommendation by our website. Readers are encouraged to conduct their own research and exercise their own judgment before making any decisions based on the information provided in this article. 

Disclaimer: This article contains sponsored marketing content. It is intended for promotional purposes and should not be considered as an endorsement or recommendation by our website. Readers are encouraged to conduct their own research and exercise their own judgment before making any decisions based on the information provided in this article.

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