With Bitcoin’s sudden drop over the last two days, there’s been some panic in the air. However, the leading cryptocurrency is still posting positive fundamental indicators.
With every sudden Bitcoin price collapse, there are always those that come out of the woodwork to claim that Bitcoin is ‘finally dead.’ At the very least, they seem to imply that Bitcoin’s dominance is living off of borrowed time. However, fundamental indicators tell us a different story.
Five Reasons Bitcoin Investors Should Not Be Worried
Here are five reasons why Bitcoin HODLrs shouldn’t panic over the recent price drop. It all comes down to fundamentals, brought to you by researcher Hans HODL (@hansthered).
1. 365-MA for Transactional Output Is at All-Time High
A chart showing the moving average for Bitcoin’s transactional output over the last 365 shows that we are currently at an all-time high. In fact, there has been a significant uptick in 2019 alone.
https://twitter.com/hansthered/status/1177012154924290048
2. Hash Rate Near All-Time High
SponsoredDespite the controversy over the recent blip which caused a supposed hash rate drop, it recovered almost immediately and is currently back near its all-time high. Bitcoin is undisputedly the more secure network in the entire cryptocurrency industry.
https://twitter.com/hansthered/status/1177012168090218497?s=20
3. Bitcoin’s Inflation Continues to Fall
The point needs to be made clear that Bitcoin will only become more scarce over time. Bitcoin’s deflationary pressure is right on schedule and below Hans HODL graphs it on a logarithmic scale.
https://twitter.com/hansthered/status/1177012175707111424
Sponsored4. Bitcoin’s Price Logarithmically Is Still on Track
All long-term estimations of Bitcoin’s price movements should be tracked on the log scale. This allows us to more clearly see the different price waves, going as far back as 2011. Using this metric, Bitcoin is soaring.
https://twitter.com/hansthered/status/1177012183147765760
5. Bitcoin’s Still Very Active GitHub
Although people may forget, Bitcoin’s GitHub is still quite active. Over the last 30 days, there were 144 Pull Requests merged and around 40 closed issues.
Sponsoredhttps://twitter.com/hansthered/status/1177012200306667521
The Bottom Line
According to Hans HODL, Bitcoin’s fundamentals don’t match the panic surrounding its future right now. The suggestion is for traders and holders to step outside of the noise for a bit and look at Bitcoin objectively. Using these metrics, we can see that major indicators for Bitcoin remain positive — and are even getting better.
https://twitter.com/hansthered/status/1177012203024633856
Turns out it was much panic over nothing. Time to go back to HODLing, indeed.
Do you agree with these 5 fundamental indicators? Are there more you would add? Let us know your thoughts below in the comments.
Midnight