Yesterday, noticed news that BTC dominance rate reached 70% !!
This is exciting for BTC investors as this shows that BTC looks strong. Most investors are provably investing mostly on BTC as against other altcoins, as its leading in the market share by this big dominance rate.
This development taken in conjunction with the fact that Bitcoin network’s hashrate is at a healthy high level of over 80 quintillion hashes per second (EH/s) validates the point that BTC looks good for a good price rise in the near future.
Hashrate refers to the amount of computing power devoted to securing bitcoin’s network, it shows that more miners are securing the bitcoin network by approving transactions in the network as is required in a Proof of Work network such as Bitcoin’s. This also means that mining BTC has become profitable with mining difficulty level rising for validating transactions.
All this says that things look bullish for Bitcoin.
September is a month where Intercontinental Exchange (ICE)’s Bakkt platform is poised to launch as well, with only a few days left for Bakkt Warehouse to open up for investors to deposit their BTCs before the ultimate launch of this BTC futures platform in September 23 that will do settlement of futures contracts through physical delivery of BTC instead of fiat.
Bakkt caters perfectly to the requirements of institutional investors who are wary to enter in the realm of BTC investing without a federally regulated, secure platform. The Bakkt platform would be trusted by them as it’s not only a federally regulated and regulatory compliant secure platform, it is overseen by the reputed ICE, that has already been successful with the running of the World’s largest stock exchange by market capitalization, the New York Stock Exchange (NYSE).
The macroeconomic conditions too look favorable for BTC, with major countries slowing signs of a slowdown with European bonds yielding negative returns. It is likely that fiat currencies would devalue, and to hedge against these devaluation, investors take to safe havens, investing in gold and BTC which has all the properties of gold, of it being a good store of value, plus BTC has a fixed supply which cannot be manipulated by Governments which is what investors would want if their country’s fiat devalues making their savings also fall in value.
So, it is likely that BTC would experience a parabolic run to highs again. Time will tell, add to this the upcoming BTC halving event coming up next year around May 2020. BTC halving reduces the mining rewards miners get for mining BTC, this would reduce the supply of bitcoin with BTC scarcity leading to price increase of BTC.