Through his official twitter page, Founder and CEO of Quantum Economics, Mati Greenspan, revealed that the Bitcoin usage has dipped down significantly in the past few days. From a chart analysis, he deduced that only 250k transactions per day have been taking place in the last few days. Which is clinching below the lowest level last seen since December 2018.
Greenspan Thoughts and Bitcoin Overview
Greenspan is a respected trader and analyst, who regularly posts markets chart containing his thoughts on different fundamental aspects of the market in general. However, he warns that despite his wide knowledge in the market, he is not able to move the market.
Since Bitcoin price plummeted early in March due to the sudden air travel ban by the United States from some European countries caused by the coronavirus outbreak, it has been consolidating in a critical zone. This has resulted in a lot of fears in the investors’ mind, as speculative trading mostly controls the market, and with these unpredictable moments, causing the wait and see nature.
Most traders and bitcoin holders are anticipating a major breakout towards the all-time highs. As the fight intensifies with other traders and holders who are worried about the current market situation, the near future market price of the asset remains volatile.
At the time of writing, according to data from TradingView on Bitcoin derivatives with the United States dollar, the market price of the asset was trading at $6,487. It was at this level that the market found a strong support zone in late 2019 and early 2020. The support was the mother of the previous bull rally that yielded Bitcoin hitting the $10k level.
A lot of speculations, however, are on whether Bitcoin has lost its store of value stance as a crypto asset, due to the increased volatility and unpredictability. However, Bitcoin dominance and market cap continue soaring up high despite the ongoing coronavirus pandemic.
A decline in Bitcoin Usage
Bitcoin as the mother crypto asset has been the trendsetter for almost a decade now, since its inception. It has shown its tenacity to survive different market circumstances, like government policies and other hurdles.
However, with time it has become like a major store of value whereby traders and investors hold it in anticipation for huge profit returns in the future. It is prudent to know that a lot of smart investors are buying in the dip with the mindset that the general uptrend is still valid.