As a result of the inflation that is occurring in the United States of America, Bitcoin price could soon rise again, according eToro.
The investment platform analyst, Simon Peters, said:
Given the growing debate over Bitcoin's hedging potential, it will be interesting to see if the US inflation data (to be released on Friday) will act as a catalyst. An annual increase in inflation, combined with an awareness that the Fed is prepared to let inflation exceed 2%, could spur more institutional investors, or even listed companies, to find a place for digital gold in their markets. wallets ”.
However, bitcoin is currently holding at $ 10,300, which was broken down yesterday, falling below this threshold. Despite this, the trend still appears to be bullish.
In this regard Simon Peters said:
“In my opinion, the drop represents an oversold by investors, so buyers may get back on their feet soon. However, as we haven't seen a significant trend reversal pattern yet, a spike to the downside below $ 10,000 is not out of the question. It is likely that if there is a close below $ 10,000 then pessimism could appear. But as long as we stay above that threshold, I remain optimistic. "
Bitcoin price, why is eToro bullish?
One of the reasons eToro is bullish is in part because the hash rate is at an all-time high. Also, 30% of addresses containing Bitcoin have not been sold for more than 3 years. This means that HODLers are increasing and the supply in the market is decreasing.
The eToro analyst commented:
“The hashrate, widely regarded as a general indicator of bitcoin's health, is at an all-time high. And data from Glassnode showed that the overall percentage of bitcoins that did not move in more than three years reached a two-year high of 30.909%. This suggests an increase in the HODLing mentality, which in turn is considered a bullish indicator: if supply decreases and demand increases, the price should follow ”.