Bitcoin’s price seems to have returned to a volatile market, with early expectations of a breakout to new highs having been dashed. However, the good news is that the current bull cycle may not be over yet, although it may take some time for the primary cryptocurrency to resume its upward trend.
In particular, recent network observations show that Bitcoin has been experiencing a period of “euphoria” over the past few months. The following is an analysis of the impact of this phase on the current bull run.
How many years has the current Bitcoin euphoria lasted?
In an article on Platform X, blockchain analytics firm Glassnode said that Bitcoin has entered the euphoric phase of the market cycle. The observation is based on the “% Supply in Profit” metric, which measures the percentage of the total Bitcoin supply that is currently generating profit.
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According to Glassnode, the “euphoria wave” refers to a period when the profit supply percentage usually hovers around 90%. This phase usually lasts for 6 to 12 months and is characterized by high investor sentiment and increased market speculation.
Glassnode data shows that 93.4% of Bitcoin in circulation is currently in a state of profit, and the current euphoria wave is "relatively young." The on-chain analysis platform pointed out that this euphoria phase only lasted about two and a half months.
Like other phases of a market cycle, the euphoria wave will eventually end. Historically, the euphoria phase may herald a market top, which is usually followed by a cool-down period characterized by a decline in the price of Bitcoin.
If the previous cycle was accompanied by a 6-month boom wave, the current bullish growth may continue for about three to four more months. Ultimately, the current profitability of the leading cryptocurrency may be decisive for the length of its bull cycle and its overall trajectory in the future.
Analysts note that addresses with increased BTC holdings continued to grow in May
Bullish sentiment for Bitcoin is evident in the continued increase in the number of savings addresses. According to on-chain analysts from the CryptoQuant platform, the number of new BTC holding addresses has risen significantly.
Analysts noted that this positive trend continued despite slower price movements in May, while large Bitcoin holders continued to increase their holdings, recording significant buying activity over the past month.
As of this writing, Bitcoin is valued at $67,744, having gained just 0.4% in the past 24 hours. The pioneer cryptocurrency is up about 15% in the past month, according to data from CoinGecko.
