Bitcoin still bullish, new report claims

Whilst there are mixed reactions concerning the direction Bitcoin will go after testing $19k, a new report claims that the digital asset still has some steam left. According to the report from Asian crypto fund provider Stack Funds, time is running out on customers as BTC could rise past $20,000 soon.

Analyzing the market cap to thermo cap ratio (MCTC), Stack predicts that the price of Bitcoin will go higher following historical precedent. The MCTC ratio of Bitcoin is showing similar signs to its 2017 performance.

The market cap to thermo cap ratio is primarily a snapshot of Bitcoin’s market cap divided by the total revenue miners have gotten since mining began.

According to the report, the MCTC ratio is around 17, mimicking mid-2017 stats. The report said:

The ratio is currently sitting at the 17 level, which coincides with its 2019 peak. In addition, the value is adjacent to its 2017 breakout, where it whipsawed around the 20 handle before Bitcoin's rally materialized.

If this similarity is anything to go by, then Stack believes that the bullish trend of Bitcoin will continue.

Given that the ratio is still at its lower band, we are skewed to believe accumulation opportunities persists, but not for long before the $20,000 price breakout materializes.

Beyond the predictions of Stack, the demand for Bitcoin from institutional investors currently exceeds its supply. Square and PayPal are already in a race to buy every newly mined Bitcoin.

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