The recent drop in Bitcoin's price by 13% from its recent peak of $73,835 to around $60,000 has led some to speculate about the end of the current bull cycle. However, according to a report by CryptoQuant, the bull cycle is likely to continue, as investment flows from new investors remain relatively low and key valuation metrics are still below levels seen at previous market peaks.
CryptoQuant's analysis indicates that only 48% of Bitcoin investment is coming from short-term holders, whereas bull cycles typically see a much higher proportion of investment from new entrants. Additionally, on-chain data suggests that Bitcoin's profitability, as measured by the P&L Index, is still outside the range associated with market tops.
The impending Bitcoin halving event, scheduled to occur in less than a month, is also expected to provide further support for Bitcoin's price. Historically, halving events have been followed by significant price increases, and with less than 31 days to go until the next halving, anticipation is building among investors.
Standard Chartered Bank has even revised its price forecast for Bitcoin, raising it from $100,000 to $150,000 by the end of 2024. The bank predicts that Bitcoin's price could reach as high as $250,000 during this cycle before settling at around $200,000.
While these analyses consider various factors including the performance of Bitcoin ETFs and market dynamics, it's essential to remember that all investment decisions carry risks, and readers should conduct their own research before making any decisions.
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