Provided below is a comment written by FISCO guest analyst Tetsuyuki Oishi (CEO of Bitcoin Lab; Twitter: @bigstonebtc). FISCO aims to provide diverse information to investors by connecting with individuals who actively provide information.
With five days to go before the halving, the current Bitcoin (BTC) price has surpassed USD 9,000. While altcoins are also picking up, their growth has not kept up with that of BTCs and remains sluggish.
According to an article posted on US CoinDesk, the number of accounts holding at least 0.1 BTC is increasing exponentially. This means accounts holding less than USD 900. It has been analyzed that this amount is almost the same as that of a USD 1,200 stimulus check sent out in the US. Some argue that this money could flow from individuals into the cryptocurrency market. A one-time JPY 100,000 cash payment has also been debated in Japan. Because consumers are unable to spend the money on dining out, shopping, and travel, which would boost consumption, it is predicted that they might use it to invest in assets. Assuming that a long-time recovery in stock prices cannot be expected amid sluggish consumption, cryptocurrencies that are performing well recently, and are not closely related to real consumption, have advantages. Many altcoins are said to be related to real demand in the real world, such as overseas remittances and consumer activity. While this has been regarded as their strength, given the current situation, pure coins such as BTCs, which have no relationship with real demand, are deemed to be stronger. It is also becoming clear that the fact that BTCs have no relation with real demand and are not closely correlated with stocks, and similar assets, itself could be a reason for investors to buy BTCs.
As for the market price as the day of the halving nears, because the date is fixed in advance, the price is unlikely to increase sharply on the day. And, because it is already factored into the USD 9,000 level, it is expected to remain at the current level before and after the halving. We should approach the day calmly without being influenced by enticements or rumors.
Author: Tetsuyuki Oishi (Tetsu ‘BIGSTONE’ OISHI)
Blog name: Bitcoin Lab