Bitcoin is on the cusp of an exhilarating bull run, and the journey has already begun. Cryptoquant analysts shed light on the most burning question: When will the bull run finally kick off? The start of the upcoming bull rally and the potential correction that might precede it. Examining the crucial profit supply metric, approximately 93% of BTC holders who have either bought or sold in the past year have secured gains, indicating their purchase price was lower than the current market value.
These figures remain unchanged as of February 25, 2024. In comparison to the previous cycle, when the share of profitable supply neared 96%, CryptoQuant experts noted the profit-taking frenzy and a widespread market correction, after which the market entered a bull rally phase. If history repeats itself, the researchers anticipate a further increase in BTC’s price.
Additionally, when the share of profitable supply reaches a level greater than 96%, investors could take profits, and the price would correct before the start of the bull rally in 2024. “I think we can assume that soon the price will rise to the level of 55–60K or even form a new ATH, after which the market will go into a correction, at the end of which a bull rally will begin,” wrote the on-chain expert.
Ripple Effect of ETFs On Bitcoin’s Soaring Prices
Market observer Fred Krueger spoke on the correlation between Bitcoin exchange-traded funds [ETFs] and its price. Citing billionaire George Soros’ reflexivity theory, Krueger opined that market prices and investor outlooks would act as mutual catalysts for each other’s growth in positive feedback loops, culminating in a sort of chain reaction.
The Gold ETF added price pressure, but nowhere near as much as the BTC ETF will. Even today, the entire Gold ETFs represent 1.5% of the Gold market versus 3.5% for BTC ETFs. That means the price pressure from reflexivity is going to be MUCH BIGGER than people expect.
With Bitcoin soaring to $56k, ETF exchange flow has skyrocketed. According to the data shared by Bloomberg analyst Eric Balchunas, trading volumes for the “new nine” spot Bitcoin ETF have tapped a new daily high of $2.4 billion, smashing its earlier record of $2.2 billion on Jan 11.