The ongoing Bitcoin bull cycle shows no signs of concluding just yet, despite significant sell-offs by prominent Bitcoin investors amidst a phase of market correction, reports from the on-chain analytics platform CryptoQuant reveal.
Bitcoin, the leading cryptocurrency globally in terms of market capitalization, appears to be undergoing a correction phase subsequent to achieving an unprecedented peak of $73,000. Analysts suggest that the price of Bitcoin might hover around the $58,000-$60,000 range during this correction.
CryptoQuant emphasizes that despite this corrective phase, the Bitcoin bull run remains intact, supported by the limited influx of new investors and valuation metrics that haven’t reached levels typically observed at previous market peaks.
Various metrics signaled overheating as Bitcoin soared to $73,000 on March 14, only to retreat to $61,700 by March 19. This correction ensued as traders capitalized on the exorbitant profit margins.
CryptoQuant notes a heightened selling activity among major Bitcoin holders, particularly as prices exceeded $70,000. These large holders were responsible for transferring 567,000 Bitcoin, representing 35% of total transfers on the network, at the peak price on March 12.
Longterm Bitcoin Bull Cycle Far From Over
“The Bitcoin bull cycle still has considerable room to run over the long term, as evidenced by the relatively subdued level of new investment inflows,” stated the firm.
According to data from CryptoQuant, 48% of Bitcoin investment currently originates from short-term holders, whereas historically, the bull cycle typically culminates with 84%-92% of investment from this category. The firm elaborates that it’s notable how the market has reached levels akin to those seen in mid-2019 (52%), a period when Bitcoin underwent a significant correction.
Bitcoin witnessed a surge in price on Wednesday following the latest Federal Reserve policy announcement, where the bank opted to maintain interest rates unchanged at 5.25-5.5% for the fifth consecutive meeting, while projecting three rate cuts in 2024. Bitcoin was trading in the mid-$67,000 range, marking a roughly 9% daily increase. The BTC price rebounded over 10% from earlier session lows, dipping below $61,000.
Markets seem to be rallying on the relief that, despite recent higher-than-anticipated US inflation figures and activity data, the Fed remains committed to implementing three interest rate cuts later this year, as reported by Joel Frank from Cryptonews.
By Friday, Bitcoin was hovering around $66,200.
