Bitcoin seems to be more than back on track again. After the first half of 2020 being a rollercoaster ride, Bitcoin is now back in the limelight. The unique network entities have touched an all-time high, crossing the high seen more than two years ago.
This led to analysis and comparisons about the increase in awareness in the public about Bitcoin and cryptocurrency. With data collected from various sources, the following have been identified as the sure signs that point out the increasing demand for Bitcoin in the market.
Report by Square
Square, a payment company, released the shareholder letter for Q2, in which it mentioned that its Bitcoin revenue was $875 million (for the Cash App). The app has around 30 million active users each month.
Compared to the revenue generated in Q1 which was $306 million, the latest figure is more than doubled, indicating a strong bullish sign for Bitcoin. If we go further back to the time when Square began supporting and accepting Bitcoin, we can say that the current figure is a whopping 600% more than what the company earned in Q1 of 2018.
Not just that, the gross profits also seem to have touched the skies by increasing at 711% during the latest second quarter compared to the profits from 2018. Considering that we are still living through a pandemic, this boost solidifies the analysis that people are indeed showing more interest in Bitcoin.
Unique Network Entities
As we mentioned above, there has been a lot of activity around Bitcoin in recent times. When the unique entities increase, it means that new users are entering the platforms to buy and trade Bitcoin. The last time there was a high in this number was in 2017.
Based on the data shared by Glassnode, the average weekly new entity rate has gone back to 140,000. This is the highest count after an interesting rise in early 2018. To say that this rise coincided with Bitcoin crossing the $10,000 mark in July would come as no surprise. The struggle, fight, and win of Bitcoin over the last few months have surely caught the attention of many people.
Major Long-term Investments by Companies
The increase in activity is seen not just in the market but also on social media platforms. Crypto lovers have been a lot more active on Twitter, promoting and sharing Bitcoin-related information with vigor.
Alongside this, we should also notice how big names are buying major shares of BTC and planning for the long-term. Square and Grayscale have brought a chunk of Bitcoin shares. There have also been rumors that PayPal might soon allow Bitcoin payments through the app.
Platforms that embraced Bitcoin are doing way better than the ones who didn’t. Does this mean the crypto markets will see even more trading? The answer appears to be obvious, though we are yet to see how many of them would become long-term investors and how many are in it to satisfy their curiosity.
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