Bitcoin has shown a 656% increase from its low in 2022, linked to rising institutional interest and ETF development. This article explores the key factors contributing to this growth.
Bitcoin Gains 656% as Institutional Demand Surges
Recently, Bitcoin has risen by 656% from its 2022 lows. This surge is largely attributed to the involvement of institutional investors who have begun to actively participate in the market through **spot Bitcoin ETFs**. Analysts from Glassnode note, “Bitcoin has soared 656% in the ongoing cycle that began in 2022... The sustained growth reflects a maturing market where investor appetite remains high.”
Institutions Hold More BTC Reducing Volatility
Increased participation from institutional investors leads to more long-term holding of Bitcoin, thereby reducing market volatility. The rise in ETFs supports this trend, encouraging asset accumulation. Experts emphasize that this may lead to stabilization of Bitcoin prices and an increase in “sticky” supply.
Historical Gains Compared: Current Cycle vs. Past
Previous Bitcoin cycles saw larger gains, such as **1,076% from 2015 to 2018**. However, current gains are significant given Bitcoin's present market cap size. Some analysts suggest that the **current market maturity** could lead to sustained growth, indicating strong long-term holder confidence.
Overall, Bitcoin's 656% increase highlights significant institutional interest and market maturity. This creates conditions for potential sustained growth in the asset's value.
