By CCN.com: Bitcoin transactions surged to a 14-month high on Wednesday, reaching levels not seen since the peak of 2017’s cryptocurrency bull run.
It comes as financial ratings firm Weiss said “the best time to invest could be very near,” citing the “remarkable growth in user transaction volume”.
In its Annual Outlook for Cryptocurrency Industry, Weiss’ full statement reads:
“Despite lower prices since early 2018, our ratings model gives us hard evidence that a critical segment of the cryptocurrency industry has enjoyed remarkable growth in user transaction volume, network capacity, and network security. Equally important is our finding that these improvements are often powered by an evolution in the underlying technology. Therefore, for those willing to take the risk, the best time to invest could be very near.”
The Bitcoin network recorded 383,186 transactions on Wednesday 27th March, according to data from blockchain.com. It’s the highest number since January 4th 2018, when bitcoin prices were at $17,000.
Bitcoin transaction volume is a strong fundamental indicator of growth. It suggests that bitcoin is being actively used beyond pure speculation. However, the surge in transactions hasn’t been reflected in the price of BTC , which remains stuck at the $4,000 level.
The sustained rise in bitcoin transaction volume, Weiss suggests, means the perfect investment point could be near.
The spike in transactions is yet another sign that bitcoin’s epic “winter” is coming to an end. As CCN.com previously reported, bitcoin broke its longest string of monthly losses in February, a clear bull signal according to ThinkMarketsUK.
ThinkMarketsUK’s chief market analyst Naeem Aslam even suggested bitcoin could surge to $400,000.
“[T]here is a high chance that the next bull run has a minimum potential of pushing the price 5 times higher. That is over $100K. I personally believe that each Bitcoin can go up as much as $400K and if history repeats itself, this number is not a fool’s paradise.”
Despite the surging transaction volumes, bitcoin has a number of technical factors to overcome before initiating a full rally.
As CCN.com reported, the bitcoin price is battling a huge and significant descending trend line. Holding above the $4,000 mark is a strong psychological factor, but BTC ideally needs to surpass and hold above $4,100 to show true bullish strength.
The Weiss cryptocurrency report also ranked the top cryptocurrencies according to technology and adoption criteria.
Bitcoin is rated A due to the recent upgrades to the Lightning Network. Weiss says bitcoin is “the best positioned to become a popular store of value for savers and investors.”
Weiss also issued A ratings to XRP and EOS. The report claims XRP is “best positioned to beat SWIFT” on interbank transfers, while EOS is poised to “become the backbone of the new internet.” Weiss ranks EOS higher than Ethereum due to the latter’s struggle with scaling.
Click here for a real-time bitcoin price chart.
Last modified: June 25, 2020 4:24 PM UTC