Bitcoin value was up 70% this year. It’s a sign of supply and demand, like any market. I don’t think Bitcoin is one step closer to mass adoption, but having a higher valuation at the end of the year than a lower one is better. Volatility seems to be down, but that is just my gut feel not a data driven point. I put a chart of the QQQ and SPY on so that you could see how moves in the broader stock market affected Bitcoin value.
Here are some other stats on Bitcoin that are interesting:
- A notional ADV of $400M in BTCUSD futures has been achieved in unregistered Chinese FBOTs during recent global economic volatility.
- As of Nov. 2016, bitcoin is the most valuable blockchain in the world with a “market capitalization” of $12.5bn. 131% 1-year growth, 66% 6-month growth, and 18% 30-day growth.
- Daily bitcoin network transaction volumes have seen 68% 1-year growth, 10% 6-month growth, and 21% 30-day growth. As of Nov. 2016, recent transaction volumes have topped 300k per day.
- Global bitcoin spot markets are fragmented but average weekly volume has seen strong growth, hitting 45M BTC weekly volume. Around 40 digital currency spot exchanges operate globally with a total ADV of 100,000 BTC as of Nov. 2016.
- More than $1.1bn venture capital funding has been invested in bitcoin and blockchain startups as of Q1 2016.
The Bitcoin sector is entering a new phase. It’s about actual applications that solve problems now. Until we have acceptance of something, it’s going to be an uphill climb. I remain bullish, but cautious.