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Bitcoin Mirrors 2015-2018 Cycle – Is Another Bull Run Coming Soon?
Recent reports suggest a striking resemblance between the current market and the trends seen in the 2015-2018 period, raising questions about the possibility of an imminent bull run. While Bitcoin’s price growth may slow down momentarily, key indicators point to a renewed euphoria phase on the horizon.
A closer examination of these parallels could provide valuable insights into the cryptocurrency’s future trajectory. Firstly, it is essential to understand the current market trends and how they align with the 2015-2018 cycle.
One critical aspect to consider is Bitcoin’s diminishing rate of price appreciation with each cycle. This trend reflects the increasing capital requirements needed to drive further growth as the asset grows in value. In other words, due to its growing size, Bitcoin demands significantly more capital to achieve similar growth, indicating a potential shift towards a new phase.
Moreover, the reduced sell-side pressure observed during recent market fluctuations has led to a notable decline in long-term holder supply ratio. It is crucial to recognize that this drop signifies a significant change in investor behavior. In essence, institutional interest and growing demand continue to drive the market forward, fostering a conducive environment for sustained growth.
To better grasp the situation, let’s delve deeper into the structural changes observed within the Bitcoin ecosystem. Since July 2024, exchange balances have seen a substantial decline from approximately 3.1 million BTC to 2.7 million BTC. It is essential to note that this drop cannot be attributed solely to individual withdrawals but rather, it has been largely driven by coins being transferred into institutional custodial wallets.
The approval of Spot ETFs in January 2024 led to an unprecedented surge in demand, subsequently causing Bitcoin to transition into Coinbase’s custodial wallets. Although exchange balances have decreased, the actual supply available for trading may not be as limited as initially believed, indicating a significant shift within the market.
In light of these striking parallels with the 2015-2018 period, it becomes increasingly essential to closely monitor market developments in the near future.
Source: ambcrypto.com
