Fundamental factors are behind Bitcoin’s growth in the fourth quarter
Statistics are an inexorable thing, and if Bitcoin usually goes into a drawdown in September, then in the period from October to December it grows at double-digit rates. So, in October last year, the coin grew by 28%, and in November and December – by more than 40%.
Institutional demand for Bitcoin is on the rise again: according to CoinShares, over $226 million was received into related investment products last week, and investment growth was 227%.
The positive is associated with SEC Chairman Gary Gensler’s support for the issuance of an ETF on Bitcoin – a futures contract that allows investment companies to work with cryptocurrency on the stock exchange. Earlier this year, this instrument was approved in Canada, where it is available on the Toronto Stock Exchange.
In the USA, such applications are under review by the supervisory authority
Jerome Powell– the chairman of the Fed, recently spoke about the unwillingness of the regulator to limit Bitcoin in any way. This has reassured investors who fear a repeat of the Chinese scenario. An increasing number of participants call the cryptocurrency “digital gold” due to the built–in disinflationary mechanism – JPMorgan talked about the displacement of Bitcoin gold in investor preferences last year.
With the growth of institutional demand, the average transaction size also increased from 0.9 BTC in August to 1.3 BTC in September. The number of daily active market participants increased by 19% last week, reaching 291 thousand.