October 19, 2021

Fundamental factors - for the growth of Bitcoin in the IV quarter

Statistics are an unforgiving thing, and if in September Bitcoin usually goes into a drawdown, then in the period from October to December it is growing at double-digit rates. So, in October last year, the coin increased by 28%, and in November and December - by more than 40%.
Fundamental factors - for the growth of Bitcoin in the IV quarter

Image source: infographic StormGain

Institutional demand for Bitcoin is back onRise: Last week, over $ 226 million in related investment products came in, according to CoinShares, and investment grew by 227%. The positive is related to the support of SEC Chairman Gary Gensler for the release of ETFs on Bitcoin - a futures contract that allows investment companies to work with cryptocurrency on the stock exchange. Earlier this year, the instrument was approved in Canada, where it is available on the Toronto Stock Exchange. In the United States, similar applications are pending with the supervisory authority.

Jerome Powell - Fed Chairman - recentlyspoke about the unwillingness of the regulator to restrict Bitcoin in any way. This has reassured investors who fear a repeat of the Chinese scenario. An increasing number of participants call the cryptocurrency "digital gold" due to the built-in disinflationary mechanism - JPMorgan spoke about the displacement of Bitcoin gold in the preferences of investors last year.

With the growth of institutional demand, increased andaverage transaction size from 0.9 BTC in August to 1.3 BTC in September. The number of daily active market participants increased by 19% last week, reaching 291 thousand.
Fundamental factors - for the growth of Bitcoin in the IV quarter

Image source: glassnode.com

The bullish factor is also keeping Bitcoin onwallets counting on continued growth. Over the past 7 months, hodlers have accumulated over 2 million BTC, while only 186 thousand BTC were mined during this period; and the total amount of coins held by long-term holders (LTH) reached 13.3 million BTC.
Fundamental factors - for the growth of Bitcoin in the IV quarter

Image source: glassnode.com

But not only big business is set to growBitcoin. Judging by the rising funding rate in perpetual futures contracts, traders are again turning to leverage to buy a little more coins.
Fundamental factors - for the growth of Bitcoin in the IV quarter

Image source: glassnode.com

Metrics, statistics and fundamentals agree that the last quarter in 2021 will again be positive for Bitcoin.

Analytical group StormGain

(platform for trading, exchanging and storing cryptocurrency)

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