Bitcoin has been showing a net profit for 6 months already.
Bitcoin ended March with a total gain of 29% and now is in the green for six straight months, according to the latest data from Bloqport. The data also shows that the value of the cryptocurrency has nearly doubled from its December 2020 closing price of $29,383 to its current value of $59,780.
With this long bull run, Bitcoin has already surpassed many other assets, including gold.
As more institutional investors and large corporations continued to increase their positions in BTC, the value of the cryptocurrency did not stop growing. For example, after making a net profit of 28% in October, Bitcoin rose 43% in November and another 48% in December. If the growth continues at the same rate and further, then the funds will have no choice but to continue to increase their position.
As for the correction expected by many, do not count on a strong drop down, since both stock speculators and large players will buy off all the dips. We should expect a decrease in the circulation of liquid BTC by the end of the summer by another 1 million coins.
Historical technical analysis shows that Bitcoin's market cycle is typically around 4 years. These cycles are called halving. The simple idea is that halving + increase in demand = increase in price. We can call this the bitcoin viral marketing cycle.
Satoshi described it in the white paper as follows:
“As the number of users grows, the value of each coin increases. He has the potential for the positive feedback; as the number of users increases, the value increases, which can attract more users to take advantage of the growing value. " - Satoshi Nakamoto
Note that Satoshi wrote this even before Bitcoin was worth $0.01.
We know that a bull run took place after every halving. However, this cycle is different from the previous ones.
Never before has Bitcoin had such strong fundamentals on the macro background of the traditional financial system that clearly highlight what Bitcoin is for. In this cycle, the ability of the global mass of money to flow into Bitcoin has never been easier. The current halving has not yet completed even a fifth of the growth.
