Bitcoin Bull Market Initiation: Evidence from Four Critical Signals

Crypto News- Bitcoin, as many have observed, tends to follow cyclical patterns. The cryptocurrency industry as a whole strongly believes in this concept, with cycles lasting approximately four years. Each cycle encompasses a bull market phase followed by a period of decline. The halving event, occurring every 210,000 blocks, halves the issuance rate of new BTC, theoretically leading to price increases due to stable demand. This pattern has held true after the three previous halvings.

Bitcoin Bull Market Initiation: Evidence from Four Critical Signals

The upcoming halving is scheduled for spring 2024, with the exact date determined by the number of mined blocks. Typically, each block is mined in about 10 minutes, but in practice, block times can vary. As we approach the halving, predictions become more precise.

Currently, approximately 157 days remain until the next Bitcoin halving, but there’s a growing consensus that global geopolitical tensions will play a significant role in the event. This has eroded trust in traditional economies, pushing people towards alternative stores of value.

Large investors, often referred to as “whales” due to their holding of over a thousand BTC, have a substantial impact on the market. Recent data from Glassnode analysts suggests that whales are actively accumulating cryptocurrencies, refraining from selling, which is beneficial for the digital asset market.

Smaller investors, often called “crabs,” holding less than 10 BTC, are also accumulating. In the past month, they have accumulated 191,600 BTC worth over $3.1 billion, setting a record for this category of investors. This indicates a growing interest in digital assets across a wide range of capital holders.

Spot ETF Approval on the Horizon?

Major financial institutions have been vying for approval to launch their own Bitcoin spot exchange-traded funds (ETFs) for years. In the summer of 2023, the debate took a significant turn when BlackRock, the world’s largest investment firm, entered the race by submitting an application.