Bitcoin Anticipated to Exhibit Upside Potential as Glassnode Spotlights Positive On-Chain Signal
A recent assessment by Glassnode, a prominent on-chain analytics company, points towards the likelihood of Bitcoin (BTC) experiencing notable growth potential based on a vital on-chain metric. Shared on the social media platform X, the firm’s analysis centers on Bitcoin’s Realized Cap, a measure indicating the price at which coins were last traded, offering a snapshot of current holder profitability.
According to Glassnode, “Realized Cap monitors net capital inflows into Bitcoin, a pivotal factor driving bull markets. It has already surged by 2.1x from the 2022 lows but remains under the 5.7x peak seen in the previous cycle. Typically, we witness a rapid escalation during periods of euphoria, a phase yet to materialize.” This assessment highlights Glassnode’s view that Bitcoin still possesses significant growth potential.
Furthermore, the firm draws comparisons between the ongoing Bitcoin cycle and the bullish trend observed from 2015 to 2018, predominantly influenced by spot market investments. “Despite the substantially larger market capitalization today, corrections rarely dip below -25%. This resilience reflects strong demand alongside ETF inflows and Bitcoin’s growing status as a macro asset,” they point out.
The analysis indicates the potential for Bitcoin’s price surge with the emergence of fresh demand, potentially sparking what Glassnode identifies as a “subsequent euphoric stage.” “Prior cycles have exhibited remarkable expansions, with replicating a 100x surge akin to 2015 potentially unfeasible at this scale. Nevertheless, if demand intensifies significantly, we could witness further growth,” Glassnode concludes, offering an optimistic perspective amid prevailing market fluctuations.
At present, Bitcoin is being exchanged at $101,807, following a decrease of over 3.5% in the last 24 hours.
Wrap-up
The assessment by Glassnode presents a promising outlook on Bitcoin’s prospective growth, propelled by pivotal on-chain metrics such as Realized Cap and historical market trends. Despite recent fluctuations, there appears to be room for expansion should fresh demand materialize, reinforcing Bitcoin’s appeal in the broader financial sphere. Investors and stakeholders are advised to stay watchful as events evolve, monitoring potential factors that might impact Bitcoin’s trajectory going forward.
Disclaimer: The opinions expressed in this evaluation do not serve as investment advice. It is advisable for investors to conduct comprehensive research before engaging in high-risk investment activities involving Bitcoin or other cryptocurrencies. The Daily Hodl does not advocate for the purchase or sale of cryptocurrencies and is not registered as an investment advisor.
