news 
Bitcoin mirrors 2015-2018 cycle – Is another bull run coming soon?
January 31, 2025
The Bitcoin market is displaying signs of maturity, with the potential for a renewed euphoria phase on the horizon. While price growth may have slowed down, key indicators suggest that the market is poised to expand in the near future.
As we analyze the recent data, it becomes apparent that Bitcoin’s growth rate is mirroring the patterns seen during the 2015-2018 cycle. One notable trend is the diminishing rate of price appreciation with each subsequent cycle. With the asset having grown into a multi-trillion-dollar market, the capital required to drive further growth has naturally increased, resulting in slower price gains.
Furthermore, drawdowns in the current cycle have been relatively shallow, typically ranging between 10.1% and 23.6%. This mirrors the patterns observed during the 2015-2017 cycle, reflecting a steady and sustained demand for Bitcoin, fueled by increasing institutional interest and its growing acceptance as a macro asset.
The rise of institutions has led to a significant shift in the market structure. Since July 2024, exchange balances have dropped from 3.1 million BTC to 2.7 million BTC. While some may attribute this decline to individual withdrawals, it is more likely that most of the drop can be attributed to coins moving into institutional custodial wallets – primarily driven by Bitcoin Spot ETFs.
The approval of these ETFs in January 2024 has led to an influx of demand, causing Bitcoin to migrate into Coinbase’s custodial wallets. Although exchange balances have decreased, it appears that the actual supply available for trading may not be as limited, indicating a structural change in the market.
In conclusion, based on the recent data, it seems that the Bitcoin market is poised to expand in the near future. The possibility of another bull run is becoming increasingly likely as key indicators suggest that the current trend is mirroring patterns seen during the 2015-2018 cycle.
Please check the format of your first name and/or email address.
Thank you for subscribing to Unhashed.
More Articles
Source: ambcrypto.com
