Is Bitcoin Facing Another 'Historic Leap'?

Julio Moreno, the head of the research site 'CryptoQuant' focused on cryptocurrencies, announced that 'new whales have entered the market this year with an investment of $100 billion.' This influx of investors reveals significant progress in digital currencies, indicating a growing confidence in Bitcoin. A 'whale' in the global cryptocurrency market refers to individuals or companies that hold large amounts of a digital currency. Mr. Moreno also referred to a post by Ki Young Ju, the founder of 'CryptoQuant,' on the social media platform X (formerly Twitter) that expressed optimism regarding a price surge for Bitcoin. Mr. Young Ju noted the similarities between recent price movements of Bitcoin and those in mid-2020. He wrote, 'Despite low price volatility, chain activities remain high, with $1 billion being added daily to the wallets of new whales.' This process led to the historic rise in Bitcoin's value in 2021, increasing its price from $10,000 to $69,000. As of the writing of this report, Bitcoin is valued at $67,597. The price of Bitcoin fell to nearly $67,000 after reaching close to $72,000 in late May of this year, and it has been fluctuating around this price for about a month and a half. Nevertheless, the site 'Investing' has reported that some retail investors in this market are selling their assets. According to this site, the volume of these sales is such that if it continues, it could lead to a decrease in Bitcoin's price. 'Investing' also pointed out that recent data shows that miners' revenues have decreased over the past few weeks, which could be another factor contributing to the decline in Bitcoin's price. Bitcoin's price reached its highest in two years after crossing the $65,000 mark. However, the site also noted that the stagnation of Bitcoin's price and its lack of increase in recent weeks has not negatively impacted buyers' interest in this cryptocurrency, and recent data indicates an increase in interest in purchasing Bitcoin. 'Investing,' like the managers of 'CryptoQuant,' has pointed to an increase in investment in this market, stating that data shows users who are not typically involved in the cryptocurrency space are also showing interest in this digital currency. In Iran, despite the lack of official and accurate information about the cryptocurrency market, Iranian exchange sites and official media indicate that Iranian citizens' interest in buying Bitcoin continues. A country that was once known as a 'paradise for miners.' The latest report from the cryptocurrency risk management platform (TRM lab), which examined public transaction data from over a hundred active cryptocurrency exchange gateways in Iran, shows that in 2022, despite Iran's economy being plagued by internal protests, international sanctions, the lasting impacts of COVID-19, and a decline in the crypto market's value, the volume of cryptocurrency transactions in Iran reached $3 billion. TRM Labs, a cryptocurrency and blockchain research company, reported that the exchange 'Nobitex,' as the largest cryptocurrency exchange in Iran, accounted for $2.6 billion, or 87% of the total $3 billion in recorded domestic and international financial transactions in the cryptocurrency market in 2022. In recent years, central banks around the world have imposed strict regulations on cryptocurrency exchanges, and governments have expanded their oversight of this market in support of these new policies. These new policies have minimized Iranian users' activities on foreign exchanges. However, there are still individuals who work with foreign exchanges and accept the risk of having their funds blocked. One important aspect of the financial exchange network, similar to traditional sectors, is identity verification. Customer identification (Know Your Customer) or KYC, is regulated according to anti-money laundering (AML) laws to prevent money laundering and criminal activities. TRM's review of 15 Iranian exchanges shows that Iranian transactions have been conducted at three levels: 'without identification information; without document verification; verified with one document,' with Nobitex accounting for 89% of these transactions. This means that cryptocurrency buyers in Iran must consider a higher level of risk compared to citizens of other countries. Nevertheless, cryptocurrency market participants in Iran are also trying to keep pace with the global market.