NewsUnprecedented shift in Bitcoin value observed after 20 months

Unprecedented shift in Bitcoin value observed after 20 months

Bitcoin reaches record highs
Bitcoin reaches record highs
Images source: © Photothek via Getty Images | Janine Schmitz
ed. RKE

9:59 AM EST, December 5, 2023

The value of Bitcoin now exceeds 40 thousand dollars, a benchmark not seen in 20 months. Are there other market indicators that could signal the approaching of a bull market? November presents a unique picture in this regard. Let's scrutinize the data.

Bitcoin, the leading virtual currency, has touched a peak exchange rate not witnessed for an approximate 20 months. It has surpassed the level of 40 thousand dollars. Is this the onset of a new bull conveyor in cryptocurrency trading?

Multiple perspectives exist on this subject, though a hallmark of a bull market typically is the inclusion of fresh investment sources.

Unprecedented Bitcoin exchange rates

The amount of these funds in the context of a cryptocurrency market can be evaluated through the capitalization of stablecoins, which serve a role analogous to the money volume in stock markets. An escalation in virtual monetary influx to the system can induce effects akin to the printing of traditional paper money by a central bank for financial sustenance.

Bitcoin quotations are reaching peaks.
Bitcoin quotations are reaching peaks.© Licensor

The count of stablecoins has been enduring a systematic slump since May 2022, plunging by 33.6%. The absence of new funds thus far could lead to a deficiency of investment-ready capital, potentially weakening the market. This is discernible through, among other aspects, a diminished transaction rate in cryptocurrency exchanges.

November is the initial month in the past 18 months in which we notice a climb of 3.4%. This could be interpreted as the first cue of a probable new bull market.

Investing in Bitcoin comes with risks

It's beneficial to remember that the Bitcoin exchange rate is inconsistent, and investing in digital currency carries significant risks. A prime example was experienced by the clients of the FTX exchange a year ago. The third-largest cryptocurrency exchange crumbled within a matter of hours.

Customers endeavored to retrieve billions of dollars in assets, but their funds vanished. This implicated billions of dollars rerouted through a series of untraceable transactions initiated by a company that sought creditor protection. Billionaire Sam Bankman-Fried, a former head of one of the world's largest cryptocurrency exchanges, was prosecuted and was found guilty of seven frauds and involvement in a scheme leading to the FTX collapse.

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