Grayscale: Bitcoin Is On The Verge Of Bull Run “Like 2016”

A new report from Grayscale investments says that Bitcoin is going through a similar market structure like in 2016 just before the historic bull run.

According to this report, the demand for Bitcoin will significantly grow as inflation accelerates, highlighting the need for a scarce monetary commodity, reinforcing the use-case of the cryptocurrency.

“The current bitcoin market structure parallels that of early 2016 before [bitcoin] began its historic bull run”, the report says.

Grayscale research director, Phil Bonello said on the report that investors are searching for ways to protect against an ever-expanding monetary supply.

“Because of bitcoin’s unique qualities—such as its verifiable scarcity and supply that can’t be controlled by a central authority—we believe it can be leveraged as a store of value and as a way to escape this great monetary inflation,” he added.

Also, they cited the scoring system used by hedge fund manager Paul Tudor Jones to assess Bitcoin’s attributes against cash, gold, and financial assets and determine the market’s growth potential.

“What was surprising to me was […] that Bitcoin scored as high as it did. Bitcoin had an overall score of nearly 60% of that of financial but has a market cap that is 1/1200th of that. It scored 66% of gold as a store of value, but has a market cap that is 1/60th of gold’s outstanding value,” the report noted.

Furthermore, Grayscale pointed out that the Bitcoin daily active addresses are at their highest level since 2017’s all-time highs.

In the last 5 days, Greyscale Investments has purchased 9,702 bitcoins, over $110 million. Crypto observers have watched Grayscale obtain a large amount of Bitcoin during the last five days. On Reddit, an observer revealed that Grayscale purchased 5,973 BTC (over $68 million) a few days ago. After that, the crypto enthusiast noticed the company obtained another 3,729 bitcoins ($42 million) two days after the $68 million purchase.

Furthermore, the $100 million Grayscale Bitcoin purchase follows the recent news from Microstrategy Inc. The $1.33 billion intelligence firm announced it bought $250 million worth of Bitcoin for its new capital allocation strategy.

 

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