Bitcoin’s Ongoing Bull Cycle: An Analysis
Bitcoin’s price performances in the past decade have been characterized by alternating bear and bull cycles. The BTC halving event is typically seen as the trigger for the start of a bull market, with the period leading up to it dominated by bearish trends.
The Unusual Current Cycle
However, the current cycle has defied this trend. It commenced in mid-2023, initially fueled by excitement surrounding the potential approval of spot Bitcoin ETFs in the United States. The actualization of these products in early 2024 propelled the asset to break its previous all-time high from 2021 and achieve a new peak of nearly $74,000, marking the first instance of such a milestone occurring before a halving event.
- The legitimacy of Bitcoin as an investment asset was solidified by the introduction of ETFs by major companies like BlackRock and Fidelity.
- This led to a surge in investments, although recent weeks have seen a stabilization in demand, with BTC’s price currently fluctuating between $60,000 and $70,000.
- Rumors of the US Federal Reserve potentially reducing interest rates later this year have also contributed to a positive outlook for assets like BTC.
- The recent halving event further reduced the production rate of new BTC, down to approximately 450 BTC per day, a rate lower than the average accumulation by ETFs, whales, and retail investors.
Predicting the End of the Cycle
CryptoQuant’s CEO, Ki Young Ju, has stated that Bitcoin is currently in the midst of its ongoing bullish cycle. He presented a chart illustrating that the actual market cap of bitcoin is increasing at a faster pace than its realized cap, which values each UTXO at its last transfer price.
- This trend typically persists for about two years, indicating that the current bullish trend may conclude within the subsequent 11 months.
Hot Take: Crypto Community’s Perspective
As a member of the crypto community, it is vital to stay informed about the latest trends and developments in the market. The ongoing bull cycle of Bitcoin is a topic of keen interest and speculation among investors and enthusiasts. Understanding the dynamics of this cycle and its potential duration can help you make informed decisions regarding your crypto investments.
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