Bitcoin has been oscillating between bear and bull cycles throughout its price history. The current bull run started around mid-2023, spurred by expectations of ETF approvals. Bitcoin’s price has maintained strength during this period, hovering between $60,000 and $70,000.
Bitcoin’s price has historically moved through cycles of bear and bull markets, largely influenced by its block reward halvings. Typically, a bull market begins after a halving event, preceded by two years of bearish trends. However, the current cycle shows distinct characteristics, diverging from this traditional model.
Bitcoin’s Current Bull Run and Market Dynamics
Bitcoin’s ongoing bull run, initiated in mid-2023, initially stemmed from optimism surrounding the potential approval of spot Bitcoin ETFs in the US. At the beginning of 2024, when these ETFs were finally approved, Bitcoin soared to a new all-time high, surpassing its previous peak from 2021 and reaching approximately $74,000. This milestone marked the first time Bitcoin achieved a new peak before a scheduled block reward halving.
The approval of spot Bitcoin ETFs, backed by major financial institutions like BlackRock and Fidelity, underscored Bitcoin’s growing acceptance as a legitimate investment asset. This validation triggered a substantial influx of investments, bolstering Bitcoin’s price. While demand has stabilized in recent weeks, Bitcoin continues to trade strongly, fluctuating between $60,000 and $70,000.
Further contributing to the bullish sentiment is speculation surrounding potential interest rate cuts by the Federal Reserve (Fed) later this year. Lower interest rates typically favor riskier assets, including cryptocurrencies, potentially supporting further price increases for Bitcoin.
Moreover, the recent Bitcoin block reward halving, occurring just a month ago, has also influenced current market dynamics. While opinions vary on the diminishing impact of halvings over time, the reduction in new Bitcoin production to approximately 450 BTC per day is significant. This supply constraint, coupled with ongoing accumulation by ETFs, large investors (whales), and individual buyers, suggests a strong foundation for Bitcoin to sustain higher price levels in the foreseeable future.
Bitcoin’s Bull Cycle Analysis by CryptoQuant CEO
According to CryptoQuant CEO Ki Young Ju, Bitcoin is currently positioned in the middle of a bull cycle. Ju highlighted that Bitcoin’s market value is rising at a faster pace than its realized value, signaling a robust and healthy market condition.
Traditionally, Bitcoin’s bull cycles span approximately two years. Based on historical trends, this suggests that the ongoing bull run could potentially continue for an average of another 11 months. This outlook reflects optimism among investors and analysts regarding Bitcoin’s upward trajectory in the near term.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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