On October 6, Charles Edwards, founder of the Capriole Fund, observed a wave of accumulation by long-term Bitcoin holders.
He noted that the recent strong growth in the number of long-term Bitcoin holders is only comparable to that seen in 2016. He said that growth will have a significant impact in 2024, adding that it is not yet possible. Judging from the recent bull cycle, this means that the next one could be even bigger.
This makes this cycle more similar to 2017, when prices increased 10x in 2020.
During the 2017 bull run, BTC prices rose 1,900%. In comparison, the 2020-21 bull run has seen gains of nearly 600%.
Bitcoin sentiment strengthens
Although the current market outlook is quite pessimistic, most respondents agree with this view.
The Fear and Greed Sentiment Index is currently at 50, which is neutral. However, analysts and traders are confident that next year will mark the start of a new cycle, peaking in 2025.
“It won’t be long before Bitcoin turns bullish,” cryptocurrency analyst “hoeem” said on Oct. 5.
He added that there are several drivers and catalysts for this price rally. These include the 4-year cycle theory, which places the next cycle in 2024. The halving is intrinsically linked to these cycles and is expected to occur in April next year.
There is also a prerequisite for the approval of a spot Bitcoin ETF, which means that the issuer needs to purchase Bitcoin directly, increasing buying pressure and raising prices.
Many cryptocurrency traders and investors have also taken note of the potential impact of the supply shock.
Another potential boost is the victories of major companies like Ripple, Coinbase, and Grayscale before the SEC. So far, the courts have shown leniency in their rulings, and a comprehensive win would be a huge boon for the crypto industry.
