Bitcoin Bulls: A Contrast of 2024-2025 and 2020-2021

The realm of Bitcoin witnessed contrasting narratives narrated by on-chain trader Willy Woo. His analysis delved into the divergent terrains of the Bitcoin bull markets of 2024-2025 and 2020-2021. The 2019-2021 surge was distinguished by the dominance of futures markets, catalyzing volatile price oscillations triggered by liquidation squeezes.

A defining moment during the 2021 peak was its unprecedented nature, catching observers off guard. This historical peak was softened by futures short positions, a novel occurrence in the market's history. In contrast, the preceding years relied heavily on spot transactions, necessitating actual Bitcoin ownership for trading.

Woo accentuated that the bulk of coins during that era were firmly held by hodlers, resulting in limited sellable stock. The scarcity of available supply, coupled with a dearth of new buyers at peak rates, often led to frenetic blow-off peaks lacking a sustainable demand foundation.

The 2021 zenith was unique as it originated from external entities and non-participants divesting from Bitcoin. Traders strategically amassed short positions utilizing USD collateral, sculpting an unconventional accumulation pattern.

The advent of 2024 heralded the introduction of Bitcoin ETFs, sanctioned earlier in the year. These ETFs, favored by conventional TradFi investors for their economic feasibility vis-a-vis futures markets, steered trading activity towards spot ETFs.

June 4 witnessed a notable inflow surge into Bitcoin ETFs, peaking at $887 million, the highest since March. With the resurgence of spot market dominance, prognosticators envisage a return to the exuberance reminiscent of the market's golden era.

Woo concluded by juxtaposing the ongoing bull market as an amalgam of the 2017 crescendo and the 2020-2021 chapter. He postulated Bitcoin's capacity for exponential expansion exceeding the previous surge.

Presently, Bitcoin commands a price vicinity of $71k, solidifying its stature in the cryptocurrency milieu as a prominent player.