•The recent surge of Bitcoin (BTC) above the $30,000 mark was attributed to large transactions and active addresses.
•According to Santiment, mid-sized active addresses rose rapidly before BTC edged above $29,200.
•NYDIG released a research paper highlighting Bitcoin’s halving cycles, banking crises, NFT involvement and hashprice rise as factors for its price performance.
Bitcoin [BTC] Reaches New Milestone
Recently Bitcoin [BTC] hit and rose above the milestone of $30,000 for the first time in ten months. This increase in the king coin’s price has been a significant milestone for the cryptocurrency market, sparking renewed interest and speculation among investors and traders.
Factors Behind The Surge
A recent surge in large transactions and active addresses contributed helped BTC’s rise to $30,000. According to Santiment, there were unusual activities going on in the market just before BTC edged above $29,200 with mid-sized active addresses rising from a notable dip in less than an hour. Active addresses indicate the level of investor interaction within a network by measuring the number of unique addresses involved in BTC transactions daily. This could signify a halving cycle change as implied volatility increased with prices following a wide-scale jump in active addresses leading to BTC’s Year-To-Date (YTD) performance hitting 79%.
NYDIG Research Paper
New York Digital Investment Group (NYDIG) released a research paper explaining Bitcoin’s model of exempting itself from correlating with other markets which highlighted some reasons for this asset performance including bitcoin halving events being important markers between two cycle highs as well as banking crises, Bitcoin’s NFT involvement and hashprice rise from its lows.
In another Santiment insight released on this landmark day it was observed that break of the $29750 resistance was because a number of 2000 BTC transactions happened almost simultaneously indicating that this spike could be attributed to supply and demand factors.
The hike of Bitcoin [BTC] over $30,000 is seen as not only monumental but also indicative of broader market dynamics such as increasing implied volatility levels due to new supply subsidy after halving cycles coupled with banking crisis impacts on prices along with massive transaction numbers due to demand factors making it one of the most lucrative investments today.