Bitcoin’s Hash Rate Indicates Potential for Growth, says CryptoQuant CEO
According to Ki Young Ju, the co-founder and chief executive of CryptoQuant, Bitcoin’s hash rate suggests that there is still a “long way to go” before the cryptocurrency reaches its peak. The hash rate, which measures the processing power of the Bitcoin network, is an important indicator of its strength and security.
Ju highlighted that 63% of Bitcoin’s realized cap, which takes into account long-lost and unclaimed coins, has remained inactive for more than six months. This figure provides a more accurate estimate of the market capitalization compared to previous cycle tops in 2021, 2018, and 2014, which saw only 15%, 5%, and 5% of the realized cap being inactive for the same period.
Furthermore, Ju pointed out that Bitcoin’s hash rate has tripled compared to its status in 2021 while its price has also increased. This suggests that the network’s processing power has grown significantly, providing a stronger foundation for future growth.
In addition to the hash rate, Ju also mentioned the movement of 18,000 BTC from Coinbase to multiple non-exchange addresses, which likely indicates custodial wallet transactions. This movement of funds further demonstrates the increasing adoption and usage of Bitcoin.
At present, Bitcoin is trading at $52,205, reflecting a more than 5% increase in the past week and an impressive 18% rise since the beginning of the year. These positive trends in both price and network strength indicate a promising outlook for the leading cryptocurrency.
As Bitcoin continues to gain traction, experts suggest that it may still have more room to grow before reaching its cyclical top. Investors and enthusiasts alike will be closely monitoring the hash rate and other key metrics, looking for signs of sustained growth and stability in the Bitcoin market.
Analyst comment
Positive news. Analyst perspective: With Bitcoin’s hash rate indicating potential for growth and the movement of funds demonstrating increasing adoption, the market is likely to see continued price increases and a stronger foundation for future growth, making the outlook for Bitcoin promising.
