TL;DR Breakdown
- Glassnode says late stage of Bitcoin bullish run is setting in.
- Other experts and speculators say same.
- Bitcoin price could drop to $25,000.
Bitcoin price bull run coming to an end?
According to Glassnode, the late stages of the BTC bullish run may be setting in slowly. On the 22nd of March, Glassnode had stated in its report that the volume of Bitcoin whales had declined in spite of steady accumulations from BTC wallets holding not more than 1 BTC since March 2018. The report stated that the increase in the number of investors holding small amounts of Bitcoin shows a desire to hodl despite the volatility in the market, a trend that has been largely unbroken from mid-2018 to 2020.
On the other hand, BTC addresses holding more than 100 Bitcoins had witnessed a flattening. This category accounts for 62.6% of the BTC supply – up by a meagre 0.87% in the last one year. Based on Glassnode’s “Reserve Risk” metric – a tool which evaluates BTC long time holders’ trust vs relative BTC price, a long time holder to first time investors transfer of wealth is in the offing.
Bearish market pattern setting in?
Per the report, a bullish market generally follows same transfer of wealth pattern in three clear stages, which gives an indication of the phase the cycle is in currently. Apart from Glassnode, a few other experts had said same thing about a looming bullish season. Jiang Zhuoer, CEO of BTC.TOP, has said that the bullish run could end as early as September. He said that the global economic recovery as vaccines for the COVID-19 pandemic become more available and a decrease in number of corporate investors in crypto may trigger a reversal in the Bitcoin market.
Timothy Peterson, an investment manager also observed the fall in the number of Bitcoin whales. Peterson said that such decline are generally related to a bearish market. He speculated that Bitcoin price could fall to $25,000.
