Bitcoin 656% Cyclical Gain Highlights Deep Market Demand – Glassnode

The Bitcoin market continues to react negatively to rising geopolitical tensions between Israel and Iran which has induced a wave of concern in the financial markets. 

Notably, the premier cryptocurrency has entered a consolidation movement between $105,000 – $106,000 following slight, after prices crashed to below $103,000 on Friday.

Meanwhile, prominent analytics company Glassnode has shared some valuable insight into the Bitcoin market dissecting the growth of the current bull cycle so far. 

In an X post on June 14, Glassnode draws comparisons of Bitcoin price growth in the present market cycle to previous ones. 

Notably, the crypto market cycle is a recurring four-year period marked by consecutive phases of accumulation, a bull market, distribution and a bear market. In the last two cycles i.e 2015-2018 and 2018-2022, Bitcoin achieved price gains of 1076% and 1007%, respectively,  significantly multiplying its market cap. 

For the current cycle from 2022 till date, Bitcoin’s prices have now grown by 656%. While this figure is far off previous cycles, Glassnode reports that it’s a commendable achievement considering the premier cryptocurrency’s maturation in the past four years marked by an exposure to institutional investors and a $2 trillion valuation. 

Generally, assets are expected to produce little exponential growth with continued price growth. This can be seen with gold only achieving an estimated 192% growth over the past 10 years. 

Therefore, Glassnode notes that Bitcoin’s 6x market gain since 2022 is highly positive development that reflects a sustainable market demand even as the asset’s market cap grows. 

At the time of writing, Bitcoin continues to trade at $105,540 following a slight 0.20% gain in the past 24 hours. Meanwhile, the asset’s daily trading volume is down by 35.39% representing significant fall in market participation. 

Interestingly, reputable analytics firm Sentora reports the Bitcoin network weekly fees fell by 3.31% following recent negative political events coupled with an already uncertain market sentiment. 

Meanwhile, exchange inflows also grew by $2.4 billion indicating a significant amount of investors are looking to distribute their holdings while the premier cryptocurrency struggles to re-establish a bullish price direction. 

Notably, since establishing a new all-time high at $111, 891 on May 22, the maiden cryptocurrency has experienced a significant price correction with prices dipping as low as below $101,000 amidst a host of negative micro-economic events. 

However, the prevailing sentiment among Bitcoin investors remains bullish according to Coincodex data with the Fear & Greed index at 63 to reflect a solid level of Greed.