Despite the recent pullback of the market, cryptocurrency payments are still on the priority list of US shoppers. According to a new survey released by Deloitte, three-quarters of US retailers plan to enter the cryptocurrency market in the next two years and begin accepting digital coins. The report “Merchants Getting Ready for Crypto” by Deloitte and PayPal was published on June 8.
More than half of major retailers with over $500 million in revenue are currently spending over $1 million to build the necessary infrastructure to accept bitcoin and other crypto payments.
In addition, about 85% of merchants surveyed expected cryptocurrency payments to become ubiquitous in their industries within the next five years.
Retailers plan to provide crypto payments to improve the customer experience and expand their customer base in hopes that their brand will be perceived as “groundbreaking.” Nevertheless, it is notable that the survey was conducted on December 3 and 16, 2021, when cryptocurrency prices were relatively higher.
Now that the top cryptocurrencies have fallen more than 50% from their record high prices, there may be a shift in market sentiment. However, once prices pick up, demand for cryptocurrencies will rise again, leading to higher prices for digital assets.
The bitcoin price fluctuates in a narrow range between $28540 and $31420. The lack of positive volatility in the market has led traders and investors to expect more significant market movements.
From May 2021 to January 2022, bitcoin’s dominance rose nearly 40%. Analysts expect a bullish pattern to form as Bitcoin’s dominance increases.
However, the top cryptocurrency’s Relative Strength Index (RSI) also showed a decent bounce as the weekly RSI showed divergence. Weekly RSI divergences are crucial for trend reversal changes.
While bitcoin is hovering around $30000, market expectations and strong buying pressure could push prices up. However, BTC’s daily RSI highlighted that the coin is facing increasing selling pressure as the RSI has continued its downward trend since June 6.
Curiously enough, according to CryptoQuant analysts, macro metrics such as the MVRV ratio show a strengthening view of BTC as digital gold. MVRV is calculated by dividing the market capitalization of bitcoins by the realized capitalization. This figure can be used to assess the tops of a bull market and the bottom of a bear market.
As follows from the chart below, previous market declines happened while the MVRV ratio had values below one.
Currently it is around 1.3, meaning that the price could still go down before a cyclical bottom forms.
No matter how bitcoin and other cryptocurrencies behave in trading, regardless of their current price, retailers understand that this phenomenon is far from temporary. And right now, there is an opportunity to get at the helm of this new technology and pull in customers who are willing to spend cryptocurrency. As soon as it becomes a widespread solution, virtual money will cease to be a gimmick and will become a full-fledged financial and economic market player.
Based on the article by fxempire.com