As the crypto market awaits the upcoming halving, there are naturally many thoughts about the Bitcoin market. Firstly, there are several predictions about what the halving will present for Bitcoin. While some believe that the halving is already priced in, most others have predicted extremely bullish prices for the king coin.
On the other hand, however, many believe that Bitcoin has been largely manipulated. In a recent publication, popular crypto analyst Joseph Young debunks this notion, defending Bitcoin’s organic growth.
Young writes that in 2020 alone, Bitcoin has already pulled in about 57%, jumping above $10,000 from prices below $7,000. A lot of people think that the price spike is unnatural and was forced. Young presents the following reasons in Bitcoin’s defense.
Spot Volume Surge
For the last three months, the world’s most respected digital exchange platforms have recorded substantial growth in their trading volumes.
According to Young, Binance’s Bitcoin/USDT pair jumped by about 94% in the three weeks beginning from December’s last week. The exchange’s recorded spot volume spiked from 241,000 BTC to 468,000 BTC.
Young says that the trajectory shown by spot exchanges is enough to disregard any doubts gotten from margin trading platforms. Basically, if you assume margin trading platforms are susceptible to manipulation, the same argument cannot explain the surge spot trading volumes.
In addition to this, Bitcoin futures on the CME platform recorded a new high of $1.1 billion
Grayscale Bitcoin Trust Swells
The Grayscale Digital Currency Group runs a product it calls the Grayscale Bitcoin Investment Trust (GBTC). The product is one of the most popular ways through which investors enter the Bitcoin space, for a secure investment.
Young writes that last month, a GBTC share was worth $13.48 which puts Bitcoin at $13,000, well over its current value. This is one reason why it is fair to assume that accumulation last month was substantial. Even though the GBTC premium is 13% currently, this price is still high especially when last month’s 30% is considered.
Spike In On-Chain Activity
Young asserts here that the surge in Bitcoin’s price directly corresponds with the network’s recorded on-chain activity. For specifics, the volume of unique Bitcoin addresses did swell to 500,000 from 350,000. This swell followed the price has crossed the worrisome $10,000 mark.
Young writes that the above reasons point to the fact that “both retail investors and institutions accumulated Bitcoin”…suggesting that the rally was not completely manipulated.