According to crypto analyst Glassnode, the world’s largest cryptocurrency, Bitcoin, may be entering the second half or later stages of a bull market, as nervousness increases in some quarters about a possible fall in the value.
Based on Glassnode’s weekly analysis report, there had been a pick-up in ‘wealth transfers’ from long-term bitcoin holders to newer speculators. The firm said it was suggestive of previous market peaks.
The report stated that Bitcoin bull markets reach a ‘euphoric top’. This materializes as big holders increasingly spend their coins in order to realize profits.
Glassnode estimated long-term bitcoin holders had reactivated around 9% of supply so far in 2021 by spending coins. Although, this was below the 17% reactivation from the market’s crash in 2017.
Glassnode announced these studies suggest conditions are similar to the second half or later stages of a bull market.
The price of the dominant cryptocurrency declined by 6% on March 23 and traded at $54,294. Its price is well of a record high of $62,000 git earlier this week. However, it is worth mentioning that Bitcoin is still up nearly 700% from a year ago.
Glassnode also announced today that the most prominent players’ wallets with 1,000 to 10,000 BTC, had cut their holdings by 307,000 bitcoin since December 2020.
Bobby Lee announced Bitcoin has potential to hit $300,000 this year
On March 23, crypto exchange founder Bobby Lee announced 2021 is a bull market for bitcoin, of the sort that comes around every three or four years. He said Bitcoin has the potential to go as high as $300,000 this year.
However, Lee announced that people should be aware that it could drop as much as 80% to 90% of its value from the all-time peak.
Still, many Bitcoin advocates point to increasing institutional interest as a reason why bitcoin is unlikely to fall as it has in the past. Visa, Morgan Stanley, and JPMorgan are some of the latest big companies to get involved.