Born out of a market recession in 2009, bitcoin (BTC) has always had a correlation with the stock market. Traditionally, the cryptocurrency is in a bullish trend when the outlook for the S&P 500 index is bearish, and vice versa.
However, there are other factors affecting the BTC exchange rate. For example, Ripple’s victory in court favorably affected the entire market, including bitcoin. In addition, news about BlackRock, Fidelity and other Wall Street companies that have made applications for bitcoin-ETFs have also triggered the recent growth of the leading cryptocurrency. However, the price fluctuations remain small.
In this scenario, traders are pondering whether it is worth buying BTC now or it is better to invest in potential alternatives. We are talking about the new coin BTC20.
A new token for passive income inspired by BTC – BTC20
BTC20 is an ERC-20 standard token built on the Proof-of-Stake protocol. The developers of the cryptocurrency offer traders to invest in a “new” version of bitcoin based on a more versatile blockchain – Ethereum.
The project repeats a moment in the life cycle of BTC, more specifically, 2011, when it was trading at $1. The volume of BTC20 tokens issued is 21 million. This mirrors the total number of coins of the very first cryptocurrency.
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The new koin is based on a verified staking contract that will issue BTC20 tokens according to the Bitcoin network’s reward schedule. This means that investors can place BTC20 and receive a percentage of the rewards through the PoS mechanism. This makes the new token an altcoin to watch out for in 2023.
Vesting 70% of the total token with 120 years of ownership should contribute to a steady increase in value. Moreover, this approach will attract additional investment as the ecosystem grows and evolves. Such vesting is accomplished through Ethereum smart contracts.
However, the utility of the token is not limited to steaking. Given that the coin is based on the Ethereum blockchain, it can be used in various decentralized applications in the future. In addition, the team’s plans include partnering with multiple cryptocurrency companies to increase the ways in which BTC20 can be used.
The current BTC20 presale consists of a single phase. During the entire presale, the cost of the new cryptocurrency will be unchanged – $1. In this case, it is important for investors to manage to buy coins before they are completely sold out. Then you will be able to buy the token only after the presale, most likely at a higher cost. Traders have invested about $1.2 million in the project while waiting for a return on investment.
Pros of BTC20:
- Staking rewards increase proportionally as user participation increases.
- Ability to buy BTC for $1.
- The steaking protocol allows coin owners to earn passive income.
Under what conditions could the price of bitcoin rise to $56,000 this year?
According to CoinMarketCap, the leading digital currency is trading at $29,984 at the time of writing. In the previous week, BTC was down 2.2% but up 0.37% overnight. Bitcoin’s (BTC) recent movements are reminiscent of the bullish periods of past years. This is indicated by Glassnode, providing analysis of four metrics in a recent report.
The first metric relates to net realized profit/loss (NRPL) as measured by the 7-day exponential moving average (EMA). It shows the number of coins sold at a higher price than at the time of purchase and vice versa.
Analysts note that NRPL shows that revenue dominated for most of 2023, totaling about $270 million per day. The report emphasized that this reflects a debut sustained period of earnings since April 2022 and resembles a bull market scenario in the first half of 2019 and late 2020.
Second, the company noted that the current year so far has been explosive and positive for the overall market. Glassnode looked at the ratio between total realized gains and losses as measured by the 14-day EMA.
Third, experts are looking at the profit-to-revenue ratio (SOPR), as measured by the 7-day simple moving average. This metric is currently in a profit-dominated mode. This metric again has similar characteristics to the periods of 2016 and 2019, when the price of BTC remained slightly rising and preceded moments of strong increases.
Finally, the analyst firm clarifies that sales are driven by short-term investors (those who hold bitcoin for less than 155 days). This is because these market participants account for 78% of the daily inflow of exchange funds, and 88% of their balance sheet is in profit. In conclusion, experts note that as prices rise, the likelihood of short-term holders locking in income increases.
However, according to many crypto experts, it is the halving of bitcoin that will be the main catalyst for the rise in the value of this cryptocurrency. In a recently published video, analyst PlanB, who is known for developing the Stock-to-Flow (S2F) model, offered a BTC price forecast in the range of $40,000 to $50,000 ahead of this event. He utilized a 200-week moving average as a tool to determine the potential future value trend of the flagship cryptocurrency.
Robert Kiyosaki, famous for his finance book “Rich Dad, Poor Dad,” predicted that bitcoin could rise to $120,000 altogether. It is noteworthy that the best-selling author’s opinion is in line with the pricing policy of Standard Chartered, a London-based multinational company. Representatives of the financial organization suggested that the price of BTC could rise to $50,000 this year and exceed $120,000 by the end of 2024.
Completion
The BTC market faced a short-term resistance level around $31,000 after the rise of altcoins triggered by the SEC’s case against Ripple. Notably, the main coin is steadily approaching the $30,000 price level.
Many experts suggest that the 2024 bitcoin halving will repeat history and open the way for the coin to reach new highs. For this reason, buying the cryptocurrency before the active growth phase begins is an opportunity to make money.
Apart from bitcoin, new coins are also attracting attention with their exciting features and potential like BTC20. Developers expect the altcoin’s price trajectory to follow in the footsteps of its mastermind. This means that by buying BTC20 during the pre-sale, investors are likely to profit once the coin is released to exchanges and the staking feature is launched.
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Author: Saifedean Ammous, an expert in cryptocurrency economics.
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