Bitcoin and Ethereum Price Patterns Resemble Previous Years, Says Coinbase Research
A recent research report by Coinbase Research and Glassnode suggests that the current market cycle for Bitcoin (BTC) and Ethereum (ETH) is following similar patterns to previous years. In the period between 2018 and 2022, both cryptocurrencies experienced significant price surges, with Bitcoin jumping by 500% and Ethereum by 1,000%. Various metrics of cyclicality, such as net unrealized profit/loss and supply in profit, indicate that the current state of the crypto markets does not reflect the euphoric conditions observed during the peak of 2023. This suggests that there is still room for the market to surge.
Bitcoin Halving and Ethereum Upgrade
Coinbase Research acknowledges the potential positive impact of the upcoming Bitcoin halving, which is expected to occur in April 2024. However, they remain cautious due to limited supporting evidence and describe the relationship as speculative. The next halving will decrease the block reward from 6.25 to 3.125 BTC. As for Ethereum, analysts highlight the Cancun upgrade, which aims to enhance scalability and security. This upgrade could lead to a significant increase in processed transactions on the Ethereum network.
Similar Patterns in Bitcoin and Ethereum Cycles
Coinbase also notes that both Bitcoin and Ethereum have undergone two cycles encompassing bull and bear markets. The current cycle, which began in 2022, closely mirrors the patterns observed in previous cycles. This further supports the idea that Bitcoin and Ethereum may experience significant price increases in line with their historical patterns.
Hot Take: Potential for Significant Price Increases Ahead
The research conducted by Coinbase Research and Glassnode suggests that Bitcoin and Ethereum are following similar price patterns to previous years. With the potential positive impact of the Bitcoin halving and the upcoming Ethereum upgrade, there is room for significant price increases in both cryptocurrencies. However, it is important to remain cautious due to limited supporting evidence and the speculative nature of these relationships. Nevertheless, the current state of the crypto markets indicates that there may still be a surge ahead.
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