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. 

Bitcoin Demand Matches Maturation Rate 

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. 

Bitcoin Market Overview

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.