Anthony Pompliano, a recognized authority in the cryptocurrency community, named a feature of bitcoin (BTC) that he believes will spur the next wave of adoption of the major cryptocurrency.
In a new edition of the Best Business Show, Pompliano said that data transparency in the bitcoin network will attract more investors and traders.
Onchain data is not some magic indicator, it doesn’t predict the future. The main thing it does is transparently reveal what’s going on in the network.
Wall Street investors will open their eyes and start to realize that onchain metrics are incredibly important. And as they have an epiphany about having more information and transparency in this industry, you’re going to see more and more participants enter the market.
Proponent also believes that online data shows that more than half of the BTC supply hasn’t moved in 12 months, accordingly, investors are willing to hold the major cryptocurrency for a long time:
My favorite figure is that 64.5% of bitcoins haven’t moved in a year. This market is illiquid, it will take a demand catalyst to drive up the price. Where that comes from, I don’t know…but we’ve seen bitcoin move up quickly many times when a rally starts.
Popular network analyst Willie Wu, for his part, is keeping a close eye on the decline in BTC supply on cryptocurrency exchanges. According to him, bitcoin is poised for a sharp decline in supply, similar to what happened in the fourth quarter of 2020.
The bitcoin price is in a sideways trend because Wall Street is selling futures contracts amid the macroeconomic situation.
Meanwhile, institutionalists are buying up bitcoins at peak rates and moving them into cold storage. I remember a similar supply shock in the fourth quarter of 2020.