Following the commencement of the fourth Bitcoin halving, the entire cryptocurrency market, especially members of the Bitcoin community, anticipate an even more bullish run for the asset this year.

Notably, Bitcoin kicked off the year on a bullish note. Thanks to the approval of multiple highly anticipated spot Bitcoin ETFs, the asset benefited from global visibility, resulting in prices hitting new all-time highs.

As key players make bold predictions for the months ahead, market data from Glassnode has outlined the market’s current position, further highlighting Bitcoin’s long-term potential.

As GlassNode’s OnChain newsletter revealed, the fourth Bitcoin halving kicked off on April 20th. As a result, the annualized inflation rate of the Bitcoin Supply dropped by a notable 50%. The event prompted Bitcoin to surpass Gold in terms of issuance scarcity, a remarkable feat observed by Bitcoin proponents.

Explaining the significance of the reduction in diminishing growth rates, Glassnode explains; 

“When measuring across Halving Epochs, diminishing growth rates are noted across multiple network statistics, whilst the absolute value of these measures continues to climb to new ATHs.”

Another key development worthy of observation is the increase in investor profitability, which can be credited to the rising spot price and the decisive ATH break. This has dampened miners’ 50% drop in revenue relative to the start of the year.

Fundamental data outlines possibilities for Bitcoin prices following the halving

Historically, halvings have bolstered market speculation surrounding the potential impact of the event on price action. However, Glassnode outlines the importance of a balanced outlook, explaining that expectations against historical precedence can trigger an unrealistic outlook, 

The price performance of Bitcoin across various halving epochs is very “widespread,” the report read, adding that epochs are different from previous times, and as such, it may not serve as a beneficial guide.

Diminishing returns, the shallower total drawdown effect over time, and the scale of capital flows required to move it are often recorded after an epoch.

“Assessing the price performance since the cycle low up until the Halving, we note a stark similarity between the 2015, 2018, and our current cycle, all experiencing an increase of around ~200% to ~300%. However, our current cycle has been the only one on record to decisively break the previous ATH before the halving event.” The report further stated. 

During the time of this report, Bitcoin was trading for $63,830. Down by more than 8% from the previous week, Bitcoin is $9,920 away from its all-time high of $73,750. It bears mentioning that Bitcoin’s year-to-date (YTD) gains are up by 45% at this time. Technical analysis from a prominent figure leans towards a bearish end, as two sell signals were spotted over the last 24 hours.

---

Filed under: Bitcoin - @ April 26, 2024 9:27 pm