Bitcoin (BTC) is set to soar beyond $250,000 this cycle, according to lead Glassnode analyst James Check. The market has shown signs of strength compared to previous cycles, with high-conviction HODLers selling their assets at a profit.
Check highlighted that the Bitcoin network entered a “bull market distribution phase” following the launch of U.S. Bitcoin ETFs from BlackRock and Fidelity in January. This phase typically marks the peak of a cycle, as long-term HODLers begin to cash out their profits.
Despite the historical pattern of rapid price escalation followed by a sharp decline, Check believes that the current bull cycle could last longer. With significant inflows from Bitcoin ETFs, the market is fueled by “passive flows” that sustain the upward momentum.
Investment funds like BlackRock’s Global Allocation Fund have displayed interest in Bitcoin ETFs, contributing to over $9.3 billion in net flows since their launch. The surge in demand is reflected in the on-chain data, with Bitcoin’s “realized cap” hitting all-time highs in recent months.
Based on the market dynamics and strong demand, Check confidently predicts that Bitcoin will surpass $250,000 this cycle. He attributes the sustainability of the current uptrend to a more robust market structure compared to previous cycles.
Bitcoin HODLers’ Impact
Check acknowledges the role of Bitcoin HODLers in driving the price increase by “pulling back the slingshot” in 2023. As circulating supply decreases due to increased HODLing, demand from ETFs propels the price upwards rapidly. This dynamic bids on scarce coins, leading to quick price spikes.
The Bitcoin market is witnessing a unique set of circumstances that could propel the price of Bitcoin to staggering heights. With strong institutional interest, sustained demand, and a resilient market structure, the $250,000 price target seems well within reach for the leading cryptocurrency.