Over the last few weeks, the crypto market has been awash with speculations and lots of debate about whether Bitcoin could really be a bubble about to burst, all thanks to the free fall of the Bitcoin market price that almost tanked the whole cryptocurrency realm. At one point, the talk of the bubble bursting was so real that people started dumping Bitcoin for other perceptively more stable cryptos or taking their money and dashing out of the market altogether.
Calling The Bottom
However, despite the fact that these kinds of speculations have been running all year round, pundits have in multiple occasions called the bottom on Bitcoin, with the most recently inspired by the apparent results of an analysis based on transaction values within the Bitcoin network. For this kind of analysis, Bitcoin’s trade volumes are tracked to determine the averages of the funds moving in and out of the crypto network.
According to a tweet by James Loop, Bitcoin’s transaction average saw a peak at about $100,000 before backing down and losing 90% to drop to $10,000. Given that the upward trend of 2017 started at just $4,000, this mentioned loss almost reversed it. At the moment, the network is running within the $10,000 range, which is a reversal that parallels the network’s earlier position at $4,000. More logically, the current position is a reflection of the 90% loss recorded over the past year.
What Do Speculators Have To Do With It?
For one, it’s true that the reversal is partly as a result of huge volumes moving out of the Bitcoin network, especially when you put exchange activities into account. However, a critical look at the average transaction volume reveals that the figure has reduced, and that indicates one thing: that people are no longer too enthusiastic to speculate about Bitcoin. As such, it’s safe to opine that speculators are no longer as active about Bitcoin as before.
It’s a fact that the less speculation about crypto, the more stable it gets and the more adoption it gets as opposed to an extremely volatile trading environment that doesn’t quite inspire investor confidence. As such, and putting into account the significant push for more and broader adoption of Bitcoin across various use cases, it’s pretty certain that the top cryptocurrency may have finally hit its bottom. In that case, the only way it can wiggle out of this position is if it’s going up.