Bitcoin has made immense progress since the lows seen in March.
As the chart above depicts, from the lows of $3,700, the cryptocurrency has gained in excess of 150%. This rally comes in spite of the global economy, heading into recession — a recession that the Federal Reserve, the Bank of England, and the International Monetary Fund have called the worst in decades.
It’s an outperformance that has left many wondering how sustainable Bitcoin’s rise is. Because if a brutal recession really is on the horizon, why should BTC outperform?
According to a top economist tracking the crypto markets, from the data alone (casting aside the macro backdrop), Bitcoin is showing it has “room” for a FOMO run.
Alex Krüger, an economist and analyst in the Bitcoin space, found that BTC’s recent move past $10,000 was decisively different than the move to $10,000 in February earlier this year:
“Last time Bitcoin was around $10,000, in February, aggregated open interest was 65% higher and Bitmex XBT funding was 10 times higher, ticking at an approximately 100% annualized,” he wrote. Read More
A Bitcoiner since 2017 and a Bitcoin Maximalist since 2018, Tommy is our main writer and editor at Bitcoin Maximalist. Other than researching and writing about Bitcoin, Tommy loves spending time with his family and supporting his beloved Leeds United.