Bitcoin's current bull cycle could yield huge gains as long-term holders anticipate a double top similar to what we saw in 2013 and 2020.
CryptoQuant's latest analysis shows that Bitcoin's price has followed historical patterns, with cycles typically having two distinct bullish phases. Looking at past trends from 2013 and 2020, the data platform observed that long-term holders saw big gains twice, peaking at both phases of those cycles.
Given current macroeconomic conditions and the Federal Reserve’s cautious approach to inflation, market experts believe we could see this double-top pattern again. Unlike 2017, which did not have a clear correction phase, the current cycle seems more in line with the double-top dynamics of previous years.
Bitcoin's Bullish Outlook as Liquidity Flows Emerge
While the Fed is expected to cut interest rates in November, the size of the cut may be smaller than initially expected due to persistent inflationary pressures. This could lead to short-term volatility as investors react to the uncertainty surrounding monetary policy. However, the overall trend remains positive, suggesting that Bitcoin could see another bull run in 2025.
Falling global interest rates also point to a potential influx of liquidity into the market in the coming months. While it may take some time for full liquidity to flow into the market, initial investor expectations have fueled the rally. Analysts say a long-term investment strategy focused on the broader cycle is likely to outperform short-term speculation.
Meanwhile, the cryptocurrency landscape in South Korea is undergoing major changes. The Financial Services Commission (FSC) is currently discussing major regulatory measures, including allowing spot Bitcoin exchange-traded funds (ETFs) and allowing the opening of cryptocurrency trading accounts. These moves could create significant opportunities in the virtual asset market, contributing to the bullish sentiment about Bitcoin’s future.
Bitcoin’s bull run is showing strong signs, closely mirroring the double-top patterns of 2013 and 2020. With global interest rates falling and regulatory discussions in South Korea favorable to crypto, the market appears poised for another potential bull run, especially in 2025. Investors with a long-term outlook may be best positioned to benefit.
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