Bitcoin breaks $30K on the back of growing fiat adoption – correction ahead?
Key Takeaways:
Bitcoin crosses the $30,000 barrier, but not for long.
The on-chain metrics show a possible cool-off.
HSBC and Mastercard join the adoption.
YEREVAN (CoinChapter.com) – Bitcoin rode the altcoin avalanche wave and the growing adoption, ballooning to $30,000 in the European session on June 22 after a weekly 25% rally. However, some metrics point to correction ahead.
Bitcoin on-chain metrics signal a cool-off, at least in the short term
The flagship crypto is unlikely to close the session above $30,000. Despite the price appreciation, the trading volumes in the previous 24 hours have declined by nearly 8%, showing growing disbelieve among traders that the rally could be sustainable for another week.
Also read: Bitcoin bull run around the corner – 5 reasons why.
Moreover, according to the crypto analytical platform Glassnode, the flagship crypto’s Network Value to Transaction (NVT) signal reached a one-month high.
In short, the Network Value to Transactions ratio describes the relationship between market cap and transfer volume. Per analyst Willy Woo, its creator, NVT can be considered analogous to the PE (price to earnings) Ratio used in equity markets.
A growing NVT indicates that investors are pricing Bitcoin at a premium. Per Glassnode’s definition, NVT grows when “Market Cap growth outpaces utilization of on-chain transaction volume and value settlement.”
High NVT Ratio values have historically coincided with market tops and periods of overvaluation. Given the upward trajectory of the current NVT reading, a leg down or a stall might be in the books soon enough.
Additionally, the number of BTC addresses in profit reached a month-high as well, standing at 68% on June 22. Typically, wallets in profit might consider the possible stall as a good point to exit the market. If so, they could trigger a selloff wave and fuel a price correction.
HSBC and Mastercard join the Bitcoin adoption
Joining mammoth asset managers BlackRock and Fidelity, UK-based HSBC bank and global payment industry giant Mastercard filed additional trademark applications related to cryptocurrencies with the United States Patent and Trademark Office (USPTO).
According to USTPO attorney Mike Kondoudis, Mastercard’s filing covers software for verifying interactions, processing or exchanging cryptocurrencies, and connecting virtual asset service providers (VASPs).
The attorney also commented on HSBC’s new crypto-related trademark application, filed on June 12. The “HSBC Innovation Banking” focuses on metaverse banking, consulting, financial services, virtual credit cards, and several services involving non-fungible tokens (NFTs).
Also read: Bitcoin crosses $29K after Invesco jumps on BTC spot ETF bandwagon.
Notably, this is not the first foray into crypto for both companies. However, the new filings might propel the crypto adoption, sustaining the interest in Bitcoin investment from fiat companies.
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Filed under: Bitcoin - @ June 22, 2023 3:24 pm