After doubling in price in the first three months of the year, the largest cryptocurrency suffered a significant setback.
After doubling in price in the first three months of the year, Bitcoin marked a major setback in the second quarter, in which it set a new all-time high and then suffered a steep decline. What is coming?
According to the report State of the Network 102, from the firm Coin Metrics, the macroeconomic environment would be moving again in favor of the cryptocurrency.
The document highlights that after strengthening in March, the US dollar weakened in April and fell again last week. “Historically, BTC has risen when the dollar weakens. This may be good news for BTC, ”he says.
The dollar reached an all-time high in March 2020 against the main national currencies, but since then it has been declining consistently.
On the other hand, the report suggests that the market is becoming healthier because leverage levels are at their lowest level.
Another positive factor is that the network’s processing power rebounded at the beginning of May to reach a new all-time high, after the fall in April (which had led to sales for fear that the decrease in the hash rate would continue).
On the other hand, Coin Metrics maintains that the Bitcoin ecosystem has continued its expansion, as revealed by the announcement of last May 5 about the arrival of the cryptocurrency purchase and sale to more than 100 banks in the US.
Finally, another favorable point is that the Bitcoin technology would be on the verge of a major update, which would lead to a reduction in commissions and greater privacy of the network.
Beyond the report, another data that predicts that Bitcoin could go through a favorable second semester is the fact that the “whales” (large players who invest significant amounts of money in the market) began to buy intensely amid the price correction of the last few days.