Source: S4mmyeth
I will leverage my ten years of experience in traditional finance and the corporate sector to help you break down complex issues into easily digestible pieces.
After the presidential election results were announced, Bitcoin prices surged sharply, with Trump expected to be inaugurated in January.
Last week, Bitcoin prices rose by 35%, reaching $90,000 before slightly retreating.
Source: Trading View
Trading volume for Bitcoin-related products has reached $38 billion.
Source: Bloomberg
BlackRock's Bitcoin ETF has now surpassed the market value of gold ETFs and silver.
Source: X
On the corporate side:
Coinbase's stock rose by 15% in pre-market trading.
MicroStrategy currently holds over $20 billion in Bitcoin and has repurchased $2 billion worth of Bitcoin at market price.
On the government side, there is a proposal suggesting that the U.S. government purchase 200,000 Bitcoins annually over the next five years, which would give them 6% of the total supply by 2030.
Source: X
Currently, the United States holds 213,000 Bitcoins, with government-held Bitcoins accounting for 2.2% of the total supply, although this percentage may increase.
The total market capitalization of the crypto market has reached a new historical high, hitting $2.9 trillion—funding in the cryptocurrency market has never been so abundant.
Market indicators to watch:
Market dynamics have shifted from a bear market to a bull market, and investment strategies have changed to reflect the idea that most assets will only rise.
Be aware of objective indicators that signal market shifts:
1. Global liquidity (referenced by M2 supply)
Tracking certain related assets or indicators—M2 supply (3-month offset) is highly correlated with Bitcoin prices.
Source: Zero Hedge
What does this mean? It is actually a reference indicator for global liquidity. The theories of Lyn Alden and Raoul Pal suggest that liquidity in the market becomes abundant and is invested in assets, hence these economic decisions have a lag of 3 months. This correlation indicates that if Bitcoin continues to track M2 and does not deviate significantly, we may see Bitcoin prices reach $100,000 by the end of the year.
2. Fear and Greed Index (69, Nice)
View link
Source: Coin Glass
When using various indices, be aware of their methodological differences, as some indices are more sensitive than others. Coin Stats provides a relatively reasonable solution that matches the actual market conditions.
3. Downloads of the Coinbase wallet increased by 12% in the last 24 hours.
View link
Historically, when Coinbase becomes a popular app in the Apple Store or Google Play, it has usually been an important market indicator, making it worth watching.
Currently, Coinbase ranks 81 in the Apple Store.
4. Google's search trend index for Bitcoin is '79'
View link
Source: Google Trends
This is a noteworthy indicator because we cannot determine what level the 'new 100' will reach—despite current search volumes being 79% of the peak in May 2021, this cycle may see significant growth as more users enter the crypto market.
5. Venture capital funding levels in the cryptocurrency industry
View link
Source: Defi Llama
We can at least see that the overall trend of funding is rising, so when these funding levels approach or exceed $7 billion from October 2021, it may be nearing a market top. Bitcoin peaked in November 2021, which may indicate that the market could have several months of lag.
6. The flow of funds on exchanges remains neutral
View link
Source: cryptoquant
Net inflows for exchanges tend to fluctuate dramatically at market tops or bottoms. Currently, the flow of funds remains neutral, indicating that many investors are satisfied with holding spot or maintaining investments on-chain.
7. Cryptocurrency-related YouTube views
Source: YouTube
As ordinary traders see Bitcoin and cryptocurrencies gaining traction on major news channels, cryptocurrency channels may become a primary source of information for non-crypto users. Contrarian operations against mainstream media information may also be an effective strategy for selling near market tops—Rolling Stone magazine was a good indicator at the bottom of the NFT bear market.
Source: Rolling Stone Magazine
Other indicators to watch:
The time lag between Bitcoin halving events and historical peaks—the supply shock has been embedded in the market's demand dynamics, and Bitcoin miners also hold large inventories.
Technical analysis indicators such as RSI, Pi, and MACD suggest that certain crypto assets may be oversold or undervalued.
Market value to realized value ratio: A ratio of 3.7 typically indicates a peak in the crypto market cycle. It is necessary to compare market prices with realized value (i.e., the weighted average of the last on-chain transaction price).
Please check the latest Modern Market program for a broader discussion.
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I will gradually compile an analytical report to track these indicators and will provide you with updates weekly—please stay tuned.
[Disclaimer] The market has risks, and investments should be made cautiously. This article does not constitute investment advice; users should consider whether any opinions, perspectives, or conclusions in this article align with their specific circumstances. Invest accordingly at your own risk.
This article is republished with permission from: (Deep Tide TechFlow)
Original author: S4mmy's Web3 Snippets
'Bitcoin Bull Run is Coming! 7 Core Indicators Interpret Bull Market Signals, Will New Highs Be Set?' This article was first published in 'Crypto City'
