Bitcoin and cryptocurrencies are being traded differently around the world and analysis of those trends could shed light on what the notoriously tricky bitcoin price will do next, according to Digital Assets Data, a financial data company focused on bitcoin and crypto.
The bitcoin price, up around 200% over the first six months of the year, is still just half the all-time high of almost $20,000 per bitcoin reached in late 2017, though the latest bitcoin rally has given confidence to bitcoin bulls who expect it to eventually fully recover.
Bitcoin and cryptocurrency traders and investors have been searching for direction over recent weeks after the bitcoin price climbed by some 200% in the first six months of the year.
Now, new Digital Assets Data research has revealed that bitcoin is used as a store of value as an alternative to the local fiat currency in high-inflation countries, while in lower inflation countries, it’s generally traded for speculation—potentially pointing to a catalyst for a “significant” positive bitcoin price surge.
“We found that in developing countries and places where monetary policy and banks are less stable, bitcoin trading volume continued to rise even as the bitcoin price was falling,” said Mike Alfred, chief executive and co-founder of Digital Assets Data, which has just closed its first equity round, bringing the total funds it’s raised to $9.2 million.
“While this is currently happening in smaller economies, if there was instability in the developed world, perhaps through a major recession or spike in unemployment, there could be a significant surge in interest in bitcoin, resulting in a potential positive catalyst for the bitcoin price.”