Five days later and no notable change yet. At the beginning of the month, popular analyst Timothy Peterson predicted that bitcoin will hit 10k mark in 49 days. That means 44 days from now. Currently, the coin has barely moved from the 9k mark. Reports also suggest that the number of BTC wallets has increased gradually.
In the report, bitcoin will hit 12k make in a month’s time. The conclusion is derived from the increased number of active BTC wallets over the last few months. Currently how this will happen is mainly dependant on the law of demand. In the business industry, the law of demand states that ‘whenever the demand is high supply reduces’. Consequently, prices go up to control the demand.
“The number of active Bitcoin addresses used, a key signal of the 2018 price decline and 2019 recovery, suggests a value closer to $12,000, based on historical patterns.
Reflecting greater adoption, the 30-day average of unique addresses from Coinmetrics has breached last year’s peak. In 2019, when this metric exceeded the previous high, it preceded Bitcoin’s recovery from the depths of a bear market.…”
On the other hand, Timothy’s theory on Bitcoin hitting 10k is based on a theory that has been used before; Metcalfe’s law. Peterson has even written a paper explaining how the theory will work. Basically, the theory derived from the telecommunication industry. The theory states that the network’s effects are proportional to the squire of the connected people. Considering that there have been more active users of BTC wallets recently, the theory could be applicable.
45 days for bitcoin is a very long time and if history has proved anything is that bitcoin is highly volatile. Additionally, there are unprecedented factors that can affect the volatility of bitcoin. Casing point, the sudden cancelation of international fright that crashed bitcoin almost ti the ground.
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