Bitcoin Remains Resilient Despite Entering Distribution Phase

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In an interview with “What Bitcoin Did” this week, James Check, an analyst at top crypto data platform Glassnode, indicated that Bitcoin (BTC) remains strong despite renewing its record high. The expert provided reasons for his optimistic forecast, implying that the bull market may endure longer than projected.

Strong Even as It Enters Distribution Phase

Glassnode analyst James Check cautioned that Bitcoin has entered a “bull market distribution phase” after financial institutions like as BlackRock and Fidelity launched spot Bitcoin ETFs in the United States in January.
This phase occurs when strong conviction HODLers sell their assets for a profit and possible cycle peaks are achieved. However, Check stated that, unlike prior cycles, the current bull cycle is projected to endure longer than anticipated due to high inflows from spot Bitcoin ETFs, despite being in the distribution phase.

The analyst underscored the importance of passive flows in driving Bitcoin’s market dynamics, citing institutional investors’ strong interest in investing a portion of their portfolios in Bitcoin ETFs. Since their introduction, these ETFs have received more than $9 billion in net inflows.

Predicting a $250,000 Valuation

Check analyzed on-chain data to shed light on the current market picture, highlighting changes in the “realized cap” statistic, which indicates the entire worth of all coins based on their recent price movement. This major indication that his on-chain research has achieved new highs in recent months, signaling long-term demand without unsustainable, unrealized profits.

Based on high demand and current market dynamics, the analyst expressed confidence in Bitcoin’s price trajectory, predicting that the largest cryptocurrency will hit $250,000 during this cycle. He attributed the possibility of a higher peak price in this cycle to the structure of the present rally and variables such as the progressive absorption of circulating supply by HODLers and institutional investors.

Author: Simeon

Simeon is a seasoned crypto writer with a passion for exploring the fascinating world of blockchain and digital currencies. With a background in finance and technology, Simeon brings a unique perspective to his writing, delving into the complexities of decentralized finance, cryptocurrency trading, and emerging blockchain projects.

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