Meanwhile, the Bitcoin mining ecosystem has regained its balance from the crackdown on miners which pushed mining difficulty to record lows.
The price of the world’s premier digital currency, Bitcoin (BTC) hit a new milestone in October as it closed the month above $60,000 for the first time ever. The impressive performance of the digital currency pushed it to record a new All-Time High (ATH) of $67,276.79 about 12 days ago. Notably, the current growth outlook of the digital currency has re-ignited old bullish predictions that border around a $100,000 close for the coin by year-end.
A number of fundamentals helped influence the current outlook of Bitcoin with the frenzy that surrounded the approval of a Bitcoin-linked Exchange Traded Fund (ETF) product amongst the most prominent this month. The United States Securities and Exchange Commission (SEC) approved ProShares Bitcoin Futures ETF, a move that sparked the injection of cash by institutional investors, which was in turn pumped into the BTC futures market.
Per Coinspeaker’s earlier report, the ProShares ETF product saw as much as $1 billion in Assets Under Management (AUM) in less than two days from launch. The underlying impact was seen in the price of the digital currency at the latter end of the month.
At the time of writing, Bitcoin is changing hands at $62,095.98, up 1.5% in the past 24 hours according to data from Coingecko. The cryptocurrency has continued its uptrend all month long coming off with a 28.9% in October.
New all time high monthly close for Bitcoin
— Will Clemente (@WClementeIII) November 1, 2021
Key Bitcoin (BTC) Price Performance Metrics
At present, we can say that the Bitcoin mining ecosystem has regained its balance from the crackdown on miners which pushed mining difficulty to record lows. Per data from BTC.com, the mining difficulty is on track for its 8th consecutive upsurge. The next difficulty adjustment which is expected to be in 13 days’ time will push the difficulty to 21.81 trillion, a level that will just be 3 trillion below its ATH.
While increasing mining difficulty is not an anticipated development by miners as it reduces their potential gains, it generally connotes a more secured ecosystem as more miners coming online signifies more distributed computing power.
It is also a certain fact that investors are HODLing Bitcoin the most, and are largely undeterred by the series of corrections that was recorded in October.
“Notably, while long-term holders were unfazed by the retracement last month and used it as an opportunity to continue accumulating, this trend has not changed despite a significant rebound in price to new all-time highs near $67,000,” Kraken Researchers concluded. “In other words, the supply shock bought by long-term holders last month has only grown stronger this month.”
This hodling behavior is confirmed by the reduction of BTC on trading platforms. Per data from Bybt, the total Bitcoin balance on major exchanges is pegged at 1,749,369, down from its 3.1 million peaks attained back in April. The declining balance shows Bitcoin owners are storing off their holdings from exchanges, stirring the scarcity that is contributing to the growth in the price of the premier coin.
Is Bitcoin to $100,000 a Possibility?
For analysts like PlanB, the Stock-2-Flow (S2F) model creator, the answer is Yes! With his October predictions falling short of the target by 3%, the analysts believe his worse case projection of $135,000 by December ending is still well on track.
Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.
