Bitcoin (BTC) price is currently at $20,980.14 and has enjoyed a significant rally over the past two weeks with an increase of 26.82% Since January 1, 2023.
This is the first time that the dominant cryptocurrency in the ecosystem has seen such a strong development since emerging from a bear market nearly a year ago, which has sparked renewed enthusiasm from investors.
Bitcoin adoption during a bear market
While Bitcoin aims to create a strong and noticeable bullish rally over time, the latest available data indicates that the number of individuals who potentially own the crypto-asset is also rising sharply. In this regard, data compiled by CoinMarketCap indicates that as of Friday, January 13, the total number of unique Bitcoin holders 43,540,424.
In addition, it exceeds the volume of bitcoin over the past 24 hours 24.79 billion dollars, which is an increase of 36.7% Compared to the previous day’s numbers, while its total market capitalization now 376.40 billion of dollars.
The increase in the number of BTC holders indicates some growth in the adoption curve of the major cryptocurrency. Bitcoin is leaning more and more towards widespread mainstream adoption, but there are still some hurdles in its path. The main factor is the hacks and scams that have hit the crypto sector, especially bridges, because it is the factor that has the most impact on investor confidence.
It is also necessary to note the aspect of the legal framework that surrounds the ecosystem, and this framework is not currently very clear and well defined as the many legal actions currently under way prove it between the SEC (Securities and Exchange Commission) and various crypto projects such as XRP.
In addition, a report published by Finbold a few days ago states that at present, one out of 184 people 0.54% of the world’s population owns a crypto wallet containing between $1 and $99 BTC. However, it is necessary to keep in mind that a single individual can own multiple bitcoin addresses, so this number is an estimate rather than a true indicator.
Preparing for the next bullish round and reviewing the halving mechanism
Bitcoin is gradually heading out of the bear market after several weeks of price stagnation. During 2022, the asset recorded successively high levels of decline in particular: the price of bitcoin fell to -70% compared to its all-time high $64,863This is while most altcoins are also hitting record lows -90%.
However, this downward movement has brought the price back into an area that is potentially attractive to investors wanting to join the market. These likely take into account the cyclical aspect of the cryptocurrency market, more specifically Bitcoin because half.
As a reminder, halving is a mechanism of the Bitcoin protocol that causes the reward given to BTC miners to be halved when new blocks are registered on the blockchain. This process occurs once every four years or so, in a methodical manner.
More knowledgeable investors and technical analysts will note that there is, so far, a correlation between the bull run/bear run and halving phases. The latter has a positive effect on the Bitcoin price, even if the rise from each historical peak is less and less with each generation.
With a total duration of just over 300 days, the bear market has hit the entire crypto sector since the beginning of March 2022. Comparing with historical data, we note that the previous bear markets of 2014 and 2018, respectively, lasted 630 And 448 days. Therefore, it is very likely that we will witness a movement in the global market preparing for the return of the bullish trend.
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