The annual value of BTC is reaching a historical high

Colin Baseman

It is the 2nd time in Bitcoin history that the average annual value for Bitcoin / US dollar is about $ 9,000, amid a bullish halving.

Marketplace leader BTC could have completely regained all value losses from the time when it experienced a collapse in March, however an additional rate indicator is on the point of reaching a new historical high.

As Yassin Elmanjra, an Investment Adviser ARK’s crypto-asset specialist, points out, the top digital currency by market cap is now close to setting a fresh personal best for an annual average moving rate.

Metric value of Bitcoin takes off for new highs

Elmanjra on his twitter on 1 May prepared a graph proving the trend – from the beginning of the year 2018, during the current annual high of the BTC token’s average of movement, the figure has plummeted and then recovered.

The end of 2018 showed minimal level when Bitcoin /USD was exchanging at $ 3,100. Currently, the slow growth to 2019 has ended with a novel momentous period that will come if marketplaces maintain their existing points.

Thus, the middling annual moving value of Bitcoin is approximately 9 k US dollars for merely the 2nd time in the coin’s existence.

Elmanjra attracted the interest of both Anthony Pompliano, who is the co-originator of Morgan Creek Digital as well as the bestseller "Bitcoin Standard" writer Saifedean Ammous.

What is included in the everyday BTC price?

Regardless of the stable results, not every trader has confidence in the idea that the current price performance is most appropriate when it concerns the decision to purchase BTC.

In an interview, last year in September with CNBC, CEO of Morgan Creek Digital, Mark Yusko stated that exchange BTC is not something the financiers should think through.

USCO also pointed out that the token’s price has constantly made lower drops every year, except in 2015.

JP Morgan, as well as Goldman Sachs, began to dissuade customers from buying BTC

The head of DAIM, Adam Pokornitsky, told how one of the financiers reconsidered investing in the first cryptocurrency after communicating with Bank consultants. The community clarified what advantages BTC has over the traditional economic system.

US banks and the prospect financiers are persuading customers not to invest in BTC, said Pokornitsky. He claims that he lost his client after he spoke with financial advisers of these conglomerates.

According to one client, one sentence to explain the advantages of investing in cryptocurrency was not enough. However, the Director of the California Company gave a more detailed answer.

"Bitcoin is an asset with the highest indicators through the preceding Purchasing and storing BTC was cost-effective for 3853 days of all 4134 days (93.2%). If all tycoons in the globe wanted to have the token, they wouldn’t be able to buy even a third of it. BTC’s value is not tied to the US dollar and is set based on demand and supply. It has a limited supply with potentially limitless demand. Based on the current portfolio principle, any multi-asset portfolio that contained as a minimum 1-10% of Bitcoin, performed better in terms of absolute returns and adjusted for risks, than cases lacking it," Pokornitsky wrote.

Other representatives of the crypto community also joined the discussion on the benefits of investing in BTC token. Jeff Dorman, investment Director of Arca, digital asset management company, said that owning digital money is one way to escape the traditional financial system.

"Even if you are 100% in Fiat, you still hold a long position on the future of the financial system. Owning Bitcoin is one way to break out of the system and hedge against its risks. Think of the banking crisis of 2008, the European debt crisis of 2011, and the 2018 Turkish currency and debt crisis of ... and at this time, “Dorman stressed.

Previously, the number of largest BTC indicators reached the maximum since August last year. This indicator has been growing during the past two months. Wayne Chen, Coincurve founder and head of Interlapse Technologies, explained that this might suggest that some investors are using digital assets to vary amid the continuing coronavirus epidemic and in the run-up to halving.

A retrospect on Bitcoin before halving

On Wednesday, April 29, the average market rate of Bitcoin reached a 7- week high of $7922. The last time the crypto asset was traded at this level was on March 10. Since the beginning of April, the coin rate has increased by 24%. Now its capitalization is $145 billion, and trading volumes are $36 billion.

Over the past day, all the top 30 cryptocurrencies by capitalization, in addition to stablecoins, are in the "green zone.” The XRP token has grown more than others — by 9%, to $0.215, the cost of Ethereum rose by 4%, to $205. Bitcoin's market share is now 63.7%.

In less than two weeks, the Bitcoin network will host a halving — the reward for finding a block in the network of the first cryptocurrency will be halved, from 12.5 BTC to 6.25 BTC. This will approximately happen on May 13.

Earlier, trader Joe007, who leads the Bitfinex rating in terms of realized profit, predicted that after halving the BTC rate will fall, as the event is highly overestimated. At the same time, venture capitalist Tim Draper said that in the coming years, Bitcoin would rise in price to $250,000 due to its wider distribution as a means of payment.