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According to market analysis firm Reflexivity Research, bitcoin’s (BTC) performance this year is in line with the past 4-year market cycles, indicating an early shift to another potentially bullish market.
The firm published a report this week exploring the factors behind the asset’s strong performance in Q2, examining both market structure and on-chain data.
Who is buying bitcoin?
In form of reports Turns out, the current state of bitcoin is leading up to two significant events this year: the banking crisis surrounding Silicon Valley Bank (SVB) in March and BlackRock’s filing for a bitcoin spot ETF in June.
The report states that each event has “disproportionately benefited digital gold compared to other digital assets in the market.” Bitcoin now comprises over 50% of crypto’s total market cap, with bulls like Michael Sailer predicting higher heights as regulatory action drives capital away from altcoins.
The extreme interest in bitcoin is visible in the futures market, where bitcoin perpetual futures are “clearly moving away” from ether perpetual futures.
Growing interest in bitcoin is coming particularly from the United States, where BlackRock’s latest filing could become the country’s first official bitcoin spot ETF. The report notes that most of bitcoin’s performance since the asset manager’s presentation has occurred during US trading hours.
Furthermore, bitcoin has gained $1 billion since the CME futures open interest filing, indicating higher activity among US-based companies.
a look at the chain
With respect to network data, the researchers highlighted Ordinals as “a place to keep an eye on the coming quarters.” The total number of ordinals staked now approaches 15 million, raising an additional $56 million in fees for miners to date.
The number of bitcoin addresses holding more than 1 BTC passed 1 million for the first time this quarter, and the network settled nearly $2 trillion in transactions during that time.
Mirroring the finding of other firms including Glassnode and Sentiment, Reflexivity said the supply of bitcoin held by long-term holders is now relatively high, meaning market participants aren’t planning to sell their coins anytime soon.
“Should some of these ETFs be approved, the impact of new demand with record low available supply could be quite powerful,” the firm wrote.
Nevertheless, a black swan event is still in the cards, “(it) appears to be an early innings for this current bullish cycle, with a retest of cycles similar to March 2020 still likely,” the report concluded.
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According to market analysis firm Reflexivity Research, bitcoin’s (BTC) performance this year is in line with the past 4-year market cycles, indicating an early shift to another potentially bullish market.
The firm published a report this week exploring the factors behind the asset’s strong performance in Q2, examining both market structure and on-chain data.
Who is buying bitcoin?
In form of reports Turns out, the current state of bitcoin is leading up to two significant events this year: the banking crisis surrounding Silicon Valley Bank (SVB) in March and BlackRock’s filing for a bitcoin spot ETF in June.
The report states that each event has “disproportionately benefited digital gold compared to other digital assets in the market.” Bitcoin now comprises over 50% of crypto’s total market cap, with bulls like Michael Sailer predicting higher heights as regulatory action drives capital away from altcoins.
The extreme interest in bitcoin is visible in the futures market, where bitcoin perpetual futures are “clearly moving away” from ether perpetual futures.
Growing interest in bitcoin is coming particularly from the United States, where BlackRock’s latest filing could become the country’s first official bitcoin spot ETF. The report notes that most of bitcoin’s performance since the asset manager’s presentation has occurred during US trading hours.
Furthermore, bitcoin has gained $1 billion since the CME futures open interest filing, indicating higher activity among US-based companies.
a look at the chain
With respect to network data, the researchers highlighted Ordinals as “a place to keep an eye on the coming quarters.” The total number of ordinals staked now approaches 15 million, raising an additional $56 million in fees for miners to date.
The number of bitcoin addresses holding more than 1 BTC passed 1 million for the first time this quarter, and the network settled nearly $2 trillion in transactions during that time.
Mirroring the finding of other firms including Glassnode and Sentiment, Reflexivity said the supply of bitcoin held by long-term holders is now relatively high, meaning market participants aren’t planning to sell their coins anytime soon.
“Should some of these ETFs be approved, the impact of new demand with record low available supply could be quite powerful,” the firm wrote.
Nevertheless, a black swan event is still in the cards, “(it) appears to be an early innings for this current bullish cycle, with a retest of cycles similar to March 2020 still likely,” the report concluded.
Binance Free $100 (Exclusive): Use this link to register and get $100 free and 10% off fees on Binance Futures for the first month. (terms).
PrimeXBT SPECIAL OFFER: Use this link to register and enter the code CRYPTOPOTATO50 to receive up to $7,000 on your deposit.
