Grayscale report: how the market is currently echoing 2016

• According to a recent report from Grayscale, the crypto market echoes similarities to 2016, just before the leading cryptocurrency hit $20,000.
• The company predicted that the demand for the leading crypto coin will grow significantly as inflation goes up.

According to a recent report from Grayscale, the crypto market as it is echoes similarities to how the trading activity was in 2016, just before the leading cryptocurrency hit $20,000 and took the rest of the market with it to such highs. 

The company predicted that the demand for the leading crypto coin will grow significantly as inflation goes up. Not only does this highlight the use case of the digital asset but it also brings forward the need for a scarce monetary commodity in the financial space.

The report from the company looks into numerous on-chain indicators that shows the growing interest in Cryptocurrency and highlight the increase in the long term holding over short-term speculation periods.

One thing that was particularly interesting from the report was that the company noted that the daily active addresses are at their highest levels since the all-time high of 2017.

Following this, the report goes on to note that loosening monetary policy from the United States abandonment of the gold standard onwards has created cycles of many asset bubbles going into debt.

Paul Tudor Jones, a well-known hedge fund manager was mentioned by the company in the report in order to assess the attributes it’s quite hard against cash, gold and other financial assets. The report quoted him saying:

“What was surprising to me was [...] that Bitcoin scored as high as it did. Bitcoin had an overall score of nearly 60% of that of financial but has a market cap that is 1/1200th of that. It scored 66% of gold as a store of value, but has a market cap that is 1/60th of gold’s outstanding value.”

It will be interesting to see how this situation plays out. For more news on this and other crypto updates, keep it with CryptoDaily!