Beyond the temporary drop in the price of Bitcoin, after the OKEx exchange announced the suspension of all cryptocurrency withdrawals. BTC has maintained a generally upward trend during the month of October, which, however, cannot be considered a rally. However, for crypto users a stronger increase in the price of the currency should be about to occur, as fundamental data fuels optimism in Bitcoin.
The price of Bitcoin in DeFi era
The price of Bitcoin has not been the protagonist of the crypto market for a long time. And it is that, despite the fact that throughout the first half of 2020, the eyes of cryptocurrency users remained fixed on its price. Due to the expected bullish rally that the Halving would bring with it on its Blockchain. Decentralized Finance (DeFi) has diverted the attention of all users in recent months.
Thus, although DeFi has existed for several years in the crypto world, it was not until the middle of this year that they began to be taken seriously by the community. Being until now simply a promise to fulfill, like the Crypto Games and other interesting applications, but not very successful, in the world of Blockchain technology.
That situation changed when, after the launch of Compound’s governance token, the value of DeFi protocols began to increase exponentially. Leading users to invest hundreds of millions of dollars in this sector, diverting attention and capital that, in another situation, would have ended up being invested in Bitcoin.
Despite which, the cryptocurrency has remained relatively stable. Conquering a position above $ 10,000 per BTC since the end of July. Of which, beyond temporary ups and downs, it has not been altered in all this time.
Optimism for fundamentals
A good part of the explanation for why the price of Bitcoin has reached such a degree of stability above $ 10,000 is the optimism that the fundamental data of the cryptocurrency generate within crypto users. That is, the technical information that, beyond speculative changes in supply and demand, shows the real situation of the virtual currency.
In this way, data such as the Bitcoin Hash Rate, which shows the computing power concentrated in its Blockchain, has reached record figures. While the number of daily active addresses also reached a new high, with more than a million users a day. Reason why analyst Willy Woo commented that the trend seems to remain bullish in the long term:
«The fundamentals of the Blockchain, which are from 3 to 6 weeks in the minimum terms, have not changed, staying in bullish mode. If a pullback occurs, I would take it as an opportunity to invest capital in BTC if you missed the opportunity in the 10K zone«.
The vitality in the Bitcoin Blockchain would also explain events in recent weeks. Such as the report from the financial firm Fidelity, recommending the inclusion of cryptocurrencies in the portfolio of its clients. Thanks to the solidity that this asset has shown so far.