On September 26, in the middle of a week during which Bitcoin (BTC) lost approximately 20% of its value, Hans Hauge, a Senior Quantitative Researcher at Ikigai Asset Management, found multiple reasons (based on fundamentals) to remain bullish on Bitcoin.
Based on data from CryptoCompare, Bitcoin started last week at $10,011 and finished it at $8,051:
Around 00:00 UTC on September 26, Hauge took to Twitter to calm down those people who are worried about Bitcoin’s latest price correction. This was how he started his Twitter thread:
Apparently some people are worried about Bitcoin? I don't know if I can help, but let's look at some data!
Here's a chart of the 365 daily moving average of the number of transactions on the Bitcoin network. Looks like we're at an all-time high… pic.twitter.com/apvQgthZuJ
— Hans HODL (@hansthered) September 26, 2019
He then proceeded to give five other reasons why investors might want to remain bullish on Bitcoin:
- Bitcoin hash rate is at an all-time high (despite a minor hiccup on September 24):
Ok, let's check the hash rate. Maybe the miners quit mining or something? No, actually that's at an all-time high as well. pic.twitter.com/Vx3Ao4sUNP
— Hans HODL (@hansthered) September 26, 2019
- The Bitcoin inflation rate continues to fall (in log scale):
What about the inflation rate? Did we suddenly increase the supply? Hmm, right on schedule and falling in log scale over time as expected. pic.twitter.com/PQNPFKZ00V
— Hans HODL (@hansthered) September 26, 2019
- The Bitcoin price continues to rise (in log scale):
Maybe the price is the issue? No, that's increasing in log scale too… pic.twitter.com/V2ng43NSVD
— Hans HODL (@hansthered) September 26, 2019
- Quantitative easing in the U.S. looks set to continue:
Maybe the price is the issue? No, that's increasing in log scale too… pic.twitter.com/V2ng43NSVD
— Hans HODL (@hansthered) September 26, 2019
- Bitcoin development activity (based on data from GitHub) is still taking place at a healthy pace:
Did the developers stop writing code? No, 114 Pull Requests merged in the last 30 days… pic.twitter.com/s2wvpeZU9T
— Hans HODL (@hansthered) September 26, 2019
Hauge concluded this thread by saying that based on these reasons he is going to continue HOLDing Bitcoin:
I don't know what to tell you guys, from a fundamental perspective Bitcoin looks great. I guess it's back to HODLing!
— Hans HODL (@hansthered) September 26, 2019
Another person at Ikigai who is quite bullish on Bitcoin’s prospects over the next 18 months is Travis Kling, the company’s Chief Investment Officer, who told Yahoo Finance in an interview on September 27:
Hard to say what happens between now and the end of the year… but it is our base case that bitcoin makes a new all-time high in the next 18 months — that’s $20,000.
Featured Image Credit: Photo via Pexels.com
