Bitcoin Underperforming Previous Cycles Despite Rallying to $100K

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As a seasoned crypto investor with a decade of experience under my belt, I must say that the current Bitcoin cycle presents a unique and intriguing scenario. Having weathered two full cycles before this one, I can’t help but feel a sense of deja vu – yet, there’s an undeniable twist in the tale.

Based on data from Glassnode, Bitcoin’s return on investment (ROI) is currently running at approximately 26.94% lower than the average ROI observed in the previous two cycles (8.18 times return), which occurred during the timeframes of 2015-2018 and 2018-2022.

The previous bull market significantly outpaced this one with 10.47x returns. 

It’s worth mentioning that the Bitcoin cycle we’re experiencing now appears to have less price fluctuations compared to the last two cycles, as observed by the company.

Starting from late 2022, this ongoing trend has seen an average decrease of 7.68% at its lowest point. On a broader scale, it’s worth noting that the typical correction during this period can reach up to 16.24%.

During this particular cycle, the most significant adjustment amounted to approximately 26%. To put that into perspective, Bitcoin plummeted by up to 71% during its bull market in 2011.

It demonstrates that the top cryptocurrency is becoming a more dependable investment option due to its increased acceptance among larger financial institutions.

The leading cryptocurrency is currently trading at $98,894, according to CoinGecko data. 

This cryptocurrency has seen a rise of 133% since the beginning of the year, as it recently crossed the $100,000 mark for the first time.

So far, the cryptocurrency has been in the six-digit figure for only one day, while it has remained within the $10,000 to $100,000 bracket a total of 1,762 days.

According to many experts, it’s anticipated that the ongoing Bitcoin rally will persist until at least 2025. Bernstein and Bitwise both predict that the value of Bitcoin could potentially reach $200,000 in the year 2024.

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2024-12-11 18:55