Coinbase Expects A Repeat Of 2018-2022 Bitcoin Cycle, What This Means For Crypto
January 09 2024 - 6:00PM
NEWSBTC
Crypto exchange Coinbase, one of the largest exchanges in the
world, has released its latest report on Bitcoin and the crypto
market, highlighting its expectations for the Industry. The 44-page
report launched by Coinbase Institutional in conjunction with
Glassnode predicts a repeat of one of the most explosive bull
markets in recorded crypto history; the 2018-2022 market cycle.
Coinbase Says Bitcoin Will Repeat 2018-2022 Cycle In the report,
Coinbase and Glassnode analysts take into account a number of
indicators and metrics, such as total supply in profit, among
others, to figure out which trend the next bull market is expected
to follow. Now, after consideration and comparison to all of the
previous bull cycles, the analysts settle on the 2018-2022 cycle
being the most likely to be emulated this time around. Related
Reading: Crypto Analyst Identifies XRP Bear Flag To Trigger A
Massive Crash To $0.07 So far, Bitcoin and Ethereum are the
cryptocurrencies that have shown the most correlation at the start
of the 2018-2022 cycles, suggesting that a similar breakout could
be in the cards. However, looking at the chart, it shows a sharp
deviation from the previous cycles, especially as the bull market
looks to be starting earlier than it did in 2020. When it comes to
the level of risk associated with assets such as Bitcoin and
Ethereum, the report highlights the fact that crypto has deviated
from traditional assets once again. This comes after the
correlation between crypto and traditional finance markets rose to
new all-time highs back in 2022. But as Coinbase explains, “2023
saw a reversion to historical norms, indicating that crypto can be
a source of idiosyncratic risk.” As another Bitcoin halving event
draws near, Bitcoin has also seen a resumption in its surge,
spurred forward by expectations of a Spot Bitcoin ETF. Coinbase
notes that “As crypto has matured as an asset class and
institutional participation has increased, volatility has trended
steadily lower.” BTC price shakes out longs before recovering |
Source: BTCUSD On Tradingview.com What Happens If BTC Price Repeats
2018-2022 Cycle? Looking back at the last bull cycle shows us what
to expect if Bitcoin and the crypto market at large were to repeat
the same trend. In this case, expectations would be that the BTC
price would rise at least 3x higher than its previous all-time high
price of $69,000. In this case, Bitcoin would be looking at a value
of at least $200,000 by the time the next bull market is in full
swing. Following the 3.6x move that Bitcoin did to reach its new
2021 all-time high versus its 2018 all-time high, the BTC price
would be looking at a cycle peak of almost $250,000. Related
Reading: Crypto Analyst Predicts 100% Surge For Shiba Inu, But
There’s A Roadblock As for Ethereum, following the same trend and
doing a 3.2x from its previous all-time high to its new all-time
high, it would put the ETH price above $15,000. In the same vein,
the crypto market would also rise more than $10 trillion. However,
all of this is speculation as the crypto market has been known to
deviate from expectations. Like the previous bull markets, the next
one is expected to be novel, especially given the fact that
institutional investors have fully come out to play. This could
mean hundreds of billions of dollars in liquidity injections that
could drive prices higher than expected. Follow Best Owie on X
(formerly Twitter) for market insights, updates, and the occasional
funny tweet… Featured image from Analytics Insight, chart from
TradingView.com
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