The Bitcoin price has been stagnating for months – even though the stock markets are chasing records following the Fed’s significant interest rate cut. However, this could just be the calm before the next rally, says a well-known Bitcoin bull.
• Bitcoin has been stagnating for months
• Many analysts argue with cycles
• Crypto expert Jack Sparrow disagrees: A completely new era has begun
The start of the crypto year 2024 went exactly to the bulls’ liking. Bitcoin stormed from record high to record high in the first few months of the year. After its still valid all-time high of 73,798 US dollars on March 14, the original cryptocurrency lost the strength for further growth and has been oscillating listlessly ever since – with a slight downward trend . Although Bitcoin has still recorded gains of 49.92 percent since the beginning of the year at a current price of 63,530 US dollars per coin, it has fallen slightly by 1.42 percent in the past three months. At least: Ethereum lost significantly more value over the same period.
Experts assess the situation differently
Market analysts like Michael van de Poppe are trying to calm the situation down. “The markets are consolidating, but are still at the level of the four-year cycle,” quotes “Concierge” van de Poppe. Despite the recent Bitcoin halving, the expected months-long upward movement has failed to materialize. However, this is typical for the market in late summer and autumn, because “August and September are historically weak months.” Apparently, many long-term Bitcoin holders share this view and are holding on to their positions.
“In the past 30 days, Long Term Holders supply increased by 262,000 $BTC. They now control 14.82 million Bitcoin, which accounts for 75% of the total supply,” shared analytics platform CryptoQuant.
While some experts see the consolidation as part of a regular cycle, Jack Sparrow sees “drastic changes”. The crypto expert, who is considered one of the best known in the scene, considers the division of Bitcoin performance into multi-year cycles to be outdated; in his opinion, the previous market cycles are no longer valid. “Since the introduction of Bitcoin ETFs, the market has changed radically,” explains Sparrow on X. He believes that investors in the past have relied too heavily on previous halvings to predict future price movements. But these assumptions are no longer reliable today. The introduction of Bitcoin ETFs marks the end of the “old crypto cycles” and ushers in a new phase in which Bitcoin continues to mature as an asset. For this reason, crypto investors should be wary of bold forecasts that only “have some juju tea leaves as an explanation” – a clear swipe at analysts who continue to use Bitcoin cycles to explain price movements.
Chances are people are thinking way too much in terms of the old halving cycles and after a few cycles will relate good or bad things to price movements because x or y didn’t happen or used to happen and may or may not be different and have some juju tea leaves explanation…
— //Bitcoin 𝕵ack 🐐 (@BTC_JackSparrow) August 30, 2024
Sparrow sees a new Bitcoin era dawning
Sparrow doesn’t view the next Bitcoin bull run as a simple result of past patterns. “The next cycle will be about its viability as a technology, a store of value, and its integration into the real world beyond speculation,” he predicts. In his view, cryptocurrencies – particularly Bitcoin – have moved beyond the stage of speculation. Now, it’s about Bitcoin, Ether, and others establishing themselves as an indispensable part of the global financial landscape. He sees it as a positive development that institutional investors now have easy access to Bitcoin through ETFs. This allows them to accumulate Bitcoin on a large scale, which could give the Bitcoin price a boost in the coming months. “New cycles always begin with accumulation,” says Sparrow. As a result, Bitcoin has matured and is no longer dependent on speculation cycles. His conclusion: “Bitcoin has already won – it is the next evolution of money in the digital age.”
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