The Bitcoin market is undergoing significant changes with increased institutional inflows and ETF growth, redefining classic price cycle concepts.
Change in Bitcoin Liquidity
The rise of institutional investments, ETFs, and the activities of major organizations like MicroStrategy have led to a substantial increase in liquidity in the Bitcoin market. This development diminishes the influence of traditional participants, such as whales and retail investors, making market peak predictions more complex.
Technical Indicators and Long-term Trend
Current technical indicators such as the 365-day moving average remain crucial for understanding market dynamics. When this indicator rises above zero, it often precedes significant price increases for Bitcoin, as seen in previous cycles in 2013, 2017, and 2020-2021.
Bitcoin's Future in New Conditions
In the context of these changes, the Bitcoin market finds itself in a transitional phase. While current price action remains bullish, the overall trend appears uncertain. Understanding how new liquidity factors will continue shaping the market in the coming years is essential.
The transformation of the Bitcoin market driven by institutional inflows creates new challenges and opportunities for investors, reinforcing a long-term bullish trend in a changing landscape.
