Parabolic Bitcoin Bull Run Likely?

Instead of looking at what the Fed does, one should instead look to factors unique to the crypto market posits Nik Bhatia

Parabolic Bitcoin Bull Run Likely After Dormant Coin Supply Peaks, Past Data Suggests

“Bhatia concluded that after noting bitcoin’s tendency to chalk out sharp multi-month rallies after the percent of circulating supply inactive for at least a year has peaked.

As seen in the featured image, the percent of supply that was inactive for at least a year topped in January 2016 and the peak preceded a major 21-month bull run that saw prices rise from $450 to $20,000 – a staggering 4,340% rally.

Similarly, bitcoin went berserk after the metric peaked in the third quarter of 2020, rallying from $10,000 to over $60,000 in six months to April 2021.

At press time, the percent of bitcoin dormant for at least a year stood at a record 65.76%, according to data sourced from blockchain analytics firm Glassnode.

If history is a guide, bitcoin may see another meteoric rally once the metric has peaked.

‘If two-thirds of bitcoin is off the market (not for sale) for an extremely long period of time, the price is driven up when more buyers enter the market bidding for a finite supply—a scenario that has played out in bitcoin twice before,’ Bhatia noted, adding that there are more unspent one-year plus old coins than ever before.”


Master Asked on September 6, 2022 in Bitcoin.
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