- Bitcoin recently staged a remarkable comeback, surging from its prolonged hover around $30,000 to over $44,500 per coin in November and early December.
- Analysts attribute this ascent to various factors, including the anticipated approval of multiple Bitcoin spot ETFs next month, paving the way for increased institutional capital inflow.
The crypto market has weathered the storm of the bear market, and enthusiasts have reason to celebrate as Bitcoin (BTC) is predicted to surge “significantly higher” over the next 18 to 24 months. This optimistic outlook comes from the expertise of trading analyst and Reflexivity Research co-founder, Will Clemente.
In a recent thread shared on X, Clemente shed light on a series of on-chain signals suggesting a resurgence of crypto inflows and a forthcoming rebound for BTC. One notable indicator of this bullish trend is Bitcoin’s “realized market cap,” representing the total value of all BTC in circulation based on their last movement price.
Clemente pointed out that back in May, the 180-day change in realized cap turned positive, indicating “net inflows.” This positive momentum is further supported by the cost basis comparison between long-term and short-term Bitcoin holders. Notably, short-term holders surpassed HODLers in March, reflecting a positive shift in market dynamics.
“The higher the cost basis goes, the higher the marginal trading price can go without creating a strong incentive for participants to take profit,” emphasized Clemente, underscoring the significance of a rising realized cap/price.
Stablecoin dynamics are also contributing to Bitcoin’s resurgence, with the total market cap for dollar-pegged crypto witnessing an upward trajectory over the past 90 days. This trend signals a growing investor appetite for synthetic dollars with easy access to the crypto market.
Bitcoin recently made a spectacular comeback, surging from months of hovering around $30,000 to over $44,500 per coin in November and early December. Analysts speculate that this ascent can be attributed to various factors, including the anticipated approval of multiple Bitcoin spot ETFs next month, paving the way for increased institutional capital inflow.
Despite the positive fundamentals, Clemente issued a cautionary note, suggesting that Bitcoin’s journey to higher values will not be without its challenges. Leverage-driven price corrections are expected, and investors should brace themselves for these fluctuations.
Supporting this sentiment, on-chain analyst James Check issued a similar warning, emphasizing that there is still room for many investors to take profits at Bitcoin’s current price level. According to Check, a brief consolidation period would allow investor cost bases to readjust above the True Market Mean Price, ensuring a more sustainable ascent for the flagship cryptocurrency.
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