The current rise of Bitcoin differs from previous bull cycles primarily due to the actions of long-term investors and the absence of high retail leverage.
Differences in Current Bitcoin Rise
Analysis indicates that the current Bitcoin growth is distinct from past surges, as there is a lack of widespread speculation from retail investors. Key indicators, such as implied volatility and funding rates, signal a more stable and mature market.
Role of Long-Term Investors
Long-term holders of cryptocurrency, including institutional investors and high-net-worth individuals, are active in the market, creating stable demand. They purchase Bitcoin directly and hold it, reducing the available supply on exchanges.
Impact on the Cryptocurrency Market
The current structure of the Bitcoin market may positively influence the entire crypto sector. A sustainable Bitcoin growth with less retail leverage can lead to more stable development and reduced volatility in other altcoins.
Conclusions about the current Bitcoin rise suggest it is based on actions of long-term investors. This approach to accumulation may strengthen the market and make it less susceptible to sharp price fluctuations.
