While the price growth has been flat down since a while, market key indicators shows that the market is maturing. With rising institutional interest and a potentially new euphoria phase, this could signal a new phase of expansion.
With the market potentially transitioning into a euphoric phase, like in previous cycles, the current position of Bitcoin means that another period of accelerated growth may be on the horizon soon. However, as the market matured, growth ratios have steadily declined in subsequent cycles – A sign of Bitcoin’s transition to a more capital-intensive and structurally mature market.
While Bitcoin’s size today demands significantly more capital to drive similar growth, the sustained acceleration of realized capital could point to potential for market expansion. By tracking the long-term to short-term holder supply ratio, we can gauge whether the market is in an accumulation or distribution phase.
Investors has seen significant waves recently, similar to those in early 2021 and late 2017. These distribution phases were followed by price rallies, demonstrating that reduced sell-side pressure can enable sustained bullish momentum for BTC to grow further and extend its rally.
As of now, at the time of writing this article, BTC is being trade around $104,500 and has a significant trading volume of $18.7B in the last 24 hours and stands at a market capitalization of $2.1 Trillion.