Thanks to the inflation that is happening in the United States of America, the price of Bitcoin could soon rise again, according to eToro.
The investment platform analyst, Simon Peters, said:
“Given the ever-increasing debate about Bitcoin Evolution coverage potential, it will be interesting to see whether US inflation data (coming out on Friday) will act as a catalyst. An increase in inflation on an annual basis, combined with the awareness that the Fed is ready to let inflation exceed 2%, could induce more institutional investors – or even listed companies – to find a place for digital gold in their portfolios”.
Currently, however, bitcoin remains at $10,000, which yesterday broke down, falling below this threshold. Despite this, the trend seems to be bullish anyway.
In this regard Simon Peters said:
“In my opinion, the decline represents over-selling by investors, so buyers may soon be back on their feet again. However, since we have not yet seen a significant trend reversal pattern, a downward spike below $10,000 is not out of the question. It is likely that if there will be a closing below 10,000 Dollars, then pessimism could creep in. But until we will remain above that threshold, I remain bullish”.
Bitcoin price, because eToro is optimistic
One of the reasons eToro is optimistic is also because hashrate is at an all-time high. In addition, 30% of the addresses that hold Bitcoin have not sold any for over 3 years. This means that hodlers are increasing and the supply on the market is decreasing.
The eToro analyst has in fact commented:
“The hashrate – widely considered as a general indicator of bitcoin health – is at an all-time high. And Glassnode’s data showed that the overall percentage of bitcoin not moved in more than three years has reached the maximum time of two years, reaching 30.909%. This suggests an increase in the hodling mentality, which in turn is considered a bullish indicator: if supply decreases and demand increases, the price should follow”.