- Bitcoin circumstances are “just like the second half or later phases of a bull market,” Glassnode mentioned.
- Analysts pointed to indicators of long-term holders spending cash and to a discount in huge wallets.
- Speak of a bitcoin worth plunge has grown; a crypto entrepreneur mentioned there might be a 90% drop.
- Sign up here for our daily newsletter, 10 Things Before the Opening Bell.
Bitcoin could also be coming into the second half or later phases of a bull market, crypto analysts at Glassnode mentioned on Monday, as nervousness grows in some quarters a few plunge within the worth.
Glassnode’s weekly analysis discovered that there had been a pickup in “wealth transfers” from long-term bitcoin holders to newer speculators, which the corporate mentioned was harking back to market peaks.
The report mentioned bitcoin bull markets finally attain a “euphoric high” that materializes as huge holders more and more spending their cash to comprehend earnings.
Glassnode estimated that long-term bitcoin holders had reactivated about 9% of provide up to now in 2021 by spending cash, although this was beneath the 17% reactivation earlier than the market’s crash in 2017.
“These research counsel circumstances are just like the second half or later phases of a bull market,” Glassnode mentioned.
The bitcoin price was down 6% on Tuesday, to $54,294, nicely off a excessive of $62,000 earlier in March however nonetheless up by about 700% from a 12 months in the past.
Glassnode additionally mentioned on Tuesday that the most important gamers – wallets with 1,000 to 10,000 bitcoins – had lower their holdings by 307,000 bitcoins since December.
Timothy Peterson, an funding supervisor, tweeted that falls in huge holdings “are sometimes however not all the time related to bear markets.”
On Monday, Bobby Lee, the founding father of the crypto change BTCC, told CNBC that 2021 could be a bull marketplace for bitcoin, of the kind that comes round each three or 4 years. He mentioned the bitcoin worth might go as excessive as $300,000 this 12 months.
However Lee mentioned that the “bubble” was likely to pop. “Folks must be conscious that it might fall as a lot as 80% to 90% of its worth from the all-time peak,” he mentioned.
Nonetheless, many bitcoin advocates have pointed to rising institutional interest as a cause bitcoin is unlikely to crash because it has up to now. Visa, Morgan Stanley, and JPMorgan are among the newest huge names to become involved.