A market analyst at CQ Korea, Crypto Dan, believes that the current Bitcoin market is experiencing a bull cycle based on historical patterns. By examining data from the 2013 and 2020 cycles, Crypto Dan discovered that long-term investors profited twice before reaching the peak. The current market more closely resembles these earlier cycles, rather than the bullish 2017 market.
The chart of Long-Term Holder Spent Output Profit Ratio (SOPR) from CryptoQuant supports this theory, showing similar trends to previous bull cycles. SOPR is a metric used to determine whether long-term holders (those holding Bitcoin for over 155 days) are selling their Bitcoin at a profit or loss. Values greater than 1 signify long-term holders selling at a profit, while values less than 1 indicate sales at a loss.
Global interest rate cuts may significantly increase market liquidity over the next few months to a year, which could lead to positive movements by 2025. By investing with a long-term perspective and considering the anticipated increase in liquidity and historical cycle analysis, the crypto market’s bullish momentum appears to continue.
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