Coinbase Predicts Bitcoin Will Follow 2018-2022 Cycle
Crypto exchange Coinbase has released a report in collaboration with Glassnode that predicts a repeat of the 2018-2022 bull market cycle for Bitcoin and the crypto market. The report analyzes various indicators and metrics to determine the likely trend of the next bull market. Based on this analysis, Coinbase and Glassnode settle on the 2018-2022 cycle as the most probable one to be emulated this time around.
Similarities and Deviations from Previous Cycles
The report notes that Bitcoin and Ethereum have shown the most correlation at the beginning of the 2018-2022 cycles, suggesting a potential breakout. However, there is a noticeable deviation from previous cycles, particularly as the current bull market appears to be starting earlier than in 2020.
Crypto as a Source of Idiosyncratic Risk
The report highlights that crypto has once again deviated from traditional assets in terms of risk. While correlation between crypto and traditional finance markets reached all-time highs in 2022, there was a reversion to historical norms in 2023, indicating that crypto can be a source of idiosyncratic risk.
Predicted Price Movements
If Bitcoin were to repeat the same trend as the last bull cycle, analysts expect its price to rise at least 3 times higher than its previous all-time high of $69,000. This would put Bitcoin’s value at around $200,000 during the next bull market. Similarly, Ethereum could reach a price above $15,000 by following a similar trend. The overall crypto market could also surpass $10 trillion in value.
Uncertainty and Institutional Influence
It’s important to note that these predictions are speculative, as the crypto market often deviates from expectations. The next bull market is expected to be unique, especially with increased participation from institutional investors who could inject significant liquidity into the market and potentially drive prices higher than anticipated.
Hot Take: Coinbase Expects Bitcoin to Repeat Explosive Bull Market
Crypto exchange Coinbase has released a report in collaboration with Glassnode that predicts a repeat of the 2018-2022 bull market cycle for Bitcoin and the crypto market. The report analyzes various indicators and metrics to determine the likely trend of the next bull market. Based on this analysis, Coinbase and Glassnode settle on the 2018-2022 cycle as the most probable one to be emulated this time around.
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