The Future of Bitcoin’s Market Cycle: A Comparison with 2020-21
The head of blockchain analytics platform CryptoQuant shares insights on Bitcoin’s current market cycle, drawing parallels with the previous cycle in 2020-21. By analyzing price patterns, the analyst suggests that Bitcoin’s “real” bull market may just be starting.
Bitcoin’s Market Cycle Phases
- Recovery phase: $3,000-$9,000
- Bull market to previous all-time high: $9,000-$19,000
- Real bull market: $20,000-$68,000
- 2020-21:
- Recovery: $3,000-$9,000
- Bull market to previous all-time high: $9,000-$19,000
- Real bull market: $20,000-$68,000
- 2023-24:
- Recovery: $15,000-$45,000
- Bull market to previous all-time high: $45,000-$68,000
- Real bull market: $68,000-$___,000
Institutional Investor Behavior
The analyst highlights on-chain data showing that long-time deep-pocketed investors are selling Bitcoin around the prior all-time high while traditional finance groups are increasing their Bitcoin holdings.
“Old whales are selling to new whales (TradFi), not retail investors. This trend is visible on-chain.”
Institutional Investment in Bitcoin
The analyst previously reported that institutional investment in Bitcoin has reached an unprecedented level during this cycle, totaling $86 billion over the past six months.
Current Bitcoin Price
Bitcoin is currently trading at $69,286, experiencing a nearly 3% decrease in the last 24 hours.
Hot Take: A Glimpse into Bitcoin’s Future
The head of CryptoQuant suggests that Bitcoin’s market cycle is reminiscent of the 2020-21 cycle, indicating a potential start to the “real” bull market for Bitcoin. Institutional investor behavior and the significant influx of institutional funds into Bitcoin further support this projection.
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