The current market performance of Bitcoin has attracted investor attention as it parallels the behavior witnessed during the 2015-2017 bull market era. With optimistic outlooks and historical comparisons, Bitcoin's trajectory appears promising by echoing patterns from its earlier bullish cycles.

Bitcoin's Market History

The primary cryptocurrency, Bitcoin, faced a correction exceeding 20% after reaching an all-time high of around $74,000 in March 2024. This correction marked the most substantial decline on a closing basis since the FTX collapse in November 2024. Despite this setback, Bitcoin quickly recovered, touching $72,000 by May 21 and currently trading close to $69,000. According to analysis by the on-chain analytics platform Glassnode:

In a comparative view, the retracement pattern during the 2023-24 uptrend closely resembles that of the 2015-17 bull market.

During this timeframe, Bitcoin lacked futures trading, with the market primarily driven by fundamental spot transactions. The introduction of US spot Bitcoin exchange-traded funds (ETFs) and capital inflows into these funds has built a robust market structure reminiscent of earlier times. Drawing parallels with history holds significant weight. In the initial stages, Bitcoin's market infrastructure was nascent, focusing on organic growth fueled by genuine demand instead of speculative activities. Today, the emphasis on spot transactions signifies a regression to these foundational principles, hinting at a potentially sustainable growth path.

Impact of ETFs on Market Dynamics

Recent data shows a surge in ETF inflows to an average of $210 million per day, signaling a robust re-accumulation phase countering the selling pressure exerted by Bitcoin mining, which results in daily selling pressure of about $32 million following the halving event. Although there has been a slight slowdown in ETF inflows lately, the overall trend remains positive.

As per the data analysis, there has been a net inflow of $122.1 million into ETFs thus far this week, pointing towards strong buyer demand supporting the Bitcoin market. On-chain analysis conducted by Santiment further validates this trend, showcasing that Bitcoin wallets owning a minimum of 10 BTC have increased their holdings by 154,560 BTC over the past five months. This accumulation trend among larger wallets acts as an essential sentiment indicator usually associated with bullish market phases.