Long-Term Bitcoin Holders Signal Potential for Larger Bull Cycle in 2024
According to Capriole Fund founder Charles Edwards, the recent growth in long-term Bitcoin holders is reminiscent of 2016 and could have significant consequences in 2024. Edwards noted that this pattern was not observed during the last bull cycle, suggesting that the next one could be even larger. Comparing it to 2017, which saw a 10x price appreciation compared to 2020, Edwards believes that the current cycle has similarities to the previous one. This indicates the potential for significant gains in the future.
The previous bull market in 2017 saw BTC prices surge by 1,900%, while the recent bull market saw gains of around 600%. Despite the current bearish market sentiment, many analysts and traders agree with Edwards’ assessment.
Factors Contributing to Bitcoin’s Future Bullishness
Crypto analyst “hoeem” expressed confidence that Bitcoin could soon flip bullish. Several tailwinds support this belief, including the four-year cycle theory, which suggests that the next cycle will peak in 2025. The upcoming halving scheduled for April and May 2022 is also expected to impact Bitcoin’s price positively. Additionally, if a spot Bitcoin ETF gets approved, issuers will need to buy BTC directly, leading to increased buying pressure and higher prices. Traders and investors are also considering the potential impact of a supply shock on Bitcoin’s value.
Crypto Market Outlook
The overall crypto market has experienced a decline over the past week, with total capitalization currently at $1.12 trillion. However, markets have remained relatively flat since a mid-August dump.
Hot Take: Positive Signs for Bitcoin’s Future Growth
Despite the recent market downturn, the increasing number of long-term Bitcoin holders and the presence of various bullish factors suggest positive signs for Bitcoin’s future growth. With similarities to the 2017 bull cycle and the potential for a supply shock, there is a strong possibility of significant price appreciation in the coming years. As the market sentiment strengthens and more tailwinds emerge, Bitcoin’s bullish momentum may soon return.
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