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Bitcoin Skyrockets 350% From Cycle Lows: Analyst Notes Historical Trend

Published 07/12/2024, 09:42 AM
Updated 07/12/2024, 02:30 PM
© Reuters Bitcoin Skyrockets 350% From Cycle Lows: Analyst Notes Historical Trend
BTC/USD
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U.Today - According to crypto analyst Lark Davis, at the handle "TheCryptoLark" on X, Bitcoin is up 356% since this cycle's low.

In a tweet, Cryptolark noted that Bitcoin's current price performance is remarkably similar to what was seen in the last two market cycles. BTC has surged 356% since this cycle's lows, closely aligning with the 351% and 361% increases recorded at the same points in the previous two cycles. "Looks like we're right on track with the previous two cycles," the crypto analyst added.

Glassnode's recent analysis matches this same view. In a tweet, Glassnode noted that the Bitcoin market cap has climbed by more than $1.13 trillion, or +370%, as of the current ATH set in March 2024 since the cycle low in November 2022. The overall market capitalization of digital assets is now around $2.56 trillion, with Bitcoin accounting for more than half of that at $1.33 trillion.

Bitcoin has also remained the largest digital asset for the past 16 years, accounting for more than 52.7% of total industry value.

History repeating itself?

In a recent analysis, Glassnode evaluates Bitcoin's price performance in the 365 days following the prior four halving events, using 2016 and 2020 as relevant benchmarks.

Following the halving, the 2016 and 2020 cycles enjoyed several months of quiet performance before posting spectacular peak returns of +350% and +650%, respectively. The Bitcoin market in 2024 followed a similar trend in the weeks following the fourth halving in April 2024, with BTC prices fluctuating within a few percentage points since the event.

However, the 2024 uptrend has seen comparatively minor drawdowns as compared to prior bull markets. Prices have fallen by 20.3% from their local high, marking the most severe correction since November 2022. Previous cycles witnessed substantially deeper corrections, ranging from 25% to 35% in 2016-2017 and 50% to 63% in 2020-2021.

At the time of writing, BTC had dropped 2.32% in the previous 24 hours to $57,280.

This article was originally published on U.Today

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