on the crypto
The cryptocurrency market has been in decline since November 2021. Most of the cryptocurrency investors it sits idle waiting for a more favorable context. When will the bull market return? According to these four indicators, a bull market cycle may soon have begun!
Massive investments by institutional investors
The amount invested in an asset has a strong impact on its price. It is therefore interesting to see that Bitcoin is increasingly successful in convincing and attracting institutional investors.
Indeed, institutions and venture capitalists are turning to cryptocurrencies en masse, in part to meet the demands of their customers. Therefore, it is becoming quite common to include a share of cryptocurrencies to diversify the portfolios of these large investors.
The increase in these investments demonstrates the confidence that institutions have developed in the cryptocurrency industry. If they are investing their money, it is because they expect to make money when the market goes up again!
Whale hoarding of BTC
Whales are another type of fundamental player in Bitcoin and cryptocurrencies in general. Whales represent the great holders, or those who hold a quantity of assets that can influence (relatively) the market.
Now we see that the whales have been hoarding Bitcoin for several months. The volume of trading on the exchanges (in spot trading) has increased 20 times in the last 6 months. It therefore appears that the whales are building up stocks as they see the return of the Bitcoin bullish trend.
Historically high Bitcoin hashrate
Furthermore, the Bitcoin hashrate is historically high. On 11 October 2022 it even reached the record of 325,11 EH / s! Recall that the hashrate measures the number of calculations per second made by all the miners in the network to validate transactions.
The high hashrate can be interpreted from different points of view. We can already see that Bitcoin miners are present in large numbers. Despite the recent increase in mining difficulty and rising energy costs, miners believe mining remains profitable. In fact, while the price of Bitcoin is currently at its lows, miners could make a good profit when the price rises again!
The HODLers resist
Finally, it is worth considering the amount of Bitcoin on deposit. To this end, we can look at the amount of money held by Long-Term Holders (LTH), i.e. assets that have not moved for at least 155 days. This figure recently reached an all-time high. Understandably, HODLers are holding onto their BTCs for the next bullish cycle.
So are we about to see the light at the end of the tunnel? According to these four indicators, the return of a bullish cycle for cryptocurrencies will soon be initiated!
