Bitcoin Price Catalyst: New Research Reveals Potential Price Booster For BTC
The global economic downturn and the price of BTC
New research from the fintech and crypto data firm Digital Assets Data is highlighting the impact of a global economic downturn on the price of BTC.
The research has compiled data from the peer-to-peer Bitcoin exchange LocalBitcoins and it found that people in countries such as Venezuela and Argentina continued to buy BTC even when the price of BTC was dropping.
Digital Assets Data CEO Mike Alfred has recently told Forbes the results are displaying BTC’s concrete use as a store of value while we’re living this economic turmoil.
“We found that in developing countries and places where monetary policy and banks are less stable, Bitcoin trading volume continued to rise even as the price was falling,” he said.
Alfred continued and explained that “While this is currently happening in smaller economies, if there was instability in the developed world, perhaps through a major recession or spike in unemployment, there could be a significant surge in interest in Bitcoin, resulting in a potential positive catalyst for the bitcoin price.”
Bullish BTC predictions
There have been all kinds of optimistic BTC-related predictions these days, and the latest one might seem pretty bold.
The CEO of blockchain and crypto hedge fund Pantera just said that BTC’s past trend is showing that the most important crypto in the space will hit $42k this year.
This will be reportedly followed by $356,000 a couple of years later.
Dan Morehead said the following:
“One perspective would be to graph the price of Bitcoin logarithmically to take away the crazy exponential growth, and it’s typically a pretty consistent line.”
CoinMarketCap is a website that provides cryptocurrency market cap rankings, charts, and more. It was purchased by Binance for $400M in 2020.
Eduard Watson Author
An experienced finance writer for more than 10 years, active industry watcher, and gadget enthusiast.