Bitcoin’s Latest Bull Market
Bitcoin’s latest bull market officially began on June 22, 2023, when it reached a new one-year high, according to a recent report by Matrixport, a crypto financial services platform. This marks the start of Bitcoin’s fifth bull run, which is expected to propel the cryptocurrency to an impressive $125,000 by December 2024.
“This bull market officially commenced on June 22, 2023, when Bitcoin reached a new one-year high for the first time in a year. Historically, when this signal was triggered, Bitcoin has delivered, on average, returns of +310%,” the report stated.
The Significance of Timing
Matrixport emphasizes the importance of timing when considering Bitcoin investments. According to their analysis, the ideal entry point to buy Bitcoin was ideally around 14 to 16 months before the next halving event. The report highlights the end of October 2022 as the perfect entry time, with Bitcoin trading at a modest $17,000.
Bitcoin has witnessed several bull market cycles, each driven by unique narratives. From its emergence as a new payment mechanism to being recognized as an alternative form of money in China, and the rise of initial coin offerings (ICOs) followed by the DeFi and NFT crazes, each cycle has had its own catalysts.
Now, the fifth Bitcoin bull market is already underway, fueled by expectations of institutional adoption. Institutional investors are increasingly viewing Bitcoin as a diversification tool for their asset portfolios. Bitcoin’s attributes, often associated with safe-haven investments like gold and treasury bonds, have piqued the interest of institutions looking to hedge against economic uncertainty.
This trend aligns with the United States’ escalating debt-to-GDP ratio, which compels institutions to explore alternative investment avenues. Arthur Hayes, co-founder of BitMEX, attributes the surge in the crypto market to the costs associated with the hawkish U.S. foreign policy, particularly in relation to Israel’s war effort against Hamas.
“Added to Ukraine’s tab, America’s military budget is set to truly explode – especially if Hamas’ allies, such as Iran, respond by entering the fray via its proxies,” Hayes wrote in a recent blog post.
In another confirmation of the Bitcoin bull market, the leading cryptocurrency’s market dominance has reached 54%, its highest level in over two and a half years. This steady increase in Bitcoin dominance, starting from around 38% at the beginning of the year, is reflective of its year-long rally, with the flagship cryptocurrency surging by 81% since the start of 2023.
