The rapid growth of the bitcoin rate will begin in 2021

In the fourth quarter of 2020, the Bitcoin exchange rate is expected to strengthen, but large-scale expansion will begin innext year. So says popular analyst Willy Wu, who posted a series of posts on Twitter in which he analyzed the medium-term prospects of the largest digital currency.

Now in the cryptocurrency market there isrecord low volatility. According to the CoinMetrics team, this indicator fell to its lowest level since the fall of 2018. But already in the fourth quarter, an increase in the range of BTC price fluctuations is expected. Moreover, the chances for strengthening are much greater than for weakening the positions of the cryptocurrency.

Willy Woo compared the current state of the market withsituation in 2016 and came to the conclusion that we will repeat the race, taking into account the scenario four years ago. «Awakening» will begin in 2021, but the first positive signals will appear at the end of this year.

This is one of the few times in my Bitcoin careerwhere the fundamentals (on-chain data and metrics from infrastructure players) are in moon mode, yet the market is not woken to it. They will be by 2021. This is an opportunity I've not seen since mid-2016.

- Willy Woo (@woonomic) October 7, 2020

We note that back in September, Willy Woopredicted that Bitcoin would soon completely separate from traditional markets. BTC — it is a tool for protecting capital from inflation risks. This is the main advantage of cryptocurrency, which will lead to the annulment of its dependence on stock indices, primarily on the S&P 500.

Willie Wu's concept is supported by data on the growing network activity on bitcoin.

The Glassnode team recently released a graph showing that the number of Bitcoin addresses making daily transactions has been increasing since 2016: