Markets
Here’s How Bitcoin Reflects the 2015-2017 Bull Market
The current behavior of the Bitcoin market draws notable comparisons to the 2015-2017 bull market, attracting the attention of investors.
With historical parallels painting optimistic projections, Bitcoin’s outlook remains promising as it reflects trends from its formative bull market years.
Bitcoin Investors Continue to Accumulate
Bitcoin recorded a correction of over 20% after reaching a record level by almost $74,000 in March 2024. This is the largest closing market correction since the FTX collapse in November 2024.
However, Bitcoin almost recovered from this decline, reaching $72,000 on May 21. As of this writing, it is trading at around $69,000.
“From a comparative perspective, the pattern of declines throughout the 2023-2024 uptrend appears to be remarkably similar to that of the 2015-2017 bull market.” on-chain analysis Glassnode platform explain.
Learn more: Bitcoin (BTC) Price Prediction 2024/2025/2030
Bitcoin Bull Market Correction Draws. Source: Glass knot
At that time, Bitcoin lacked derivatives and the market was mainly driven by fundamental spot transactions. The introduction and inflows of cash into the United States Bitcoin Exchange Traded Funds (ETFs) have reinforced a strong market base, similar to those of the past.
The comparison becomes more important if we consider the past. In its early days, the Bitcoin market infrastructure was underdeveloped, emphasizing organic growth driven by basic demand rather than speculative trading. The current reliance on spot transactions suggests a return to these basic dynamics, potentially signaling a more sustainable growth trajectory.
Over the past week, ETF inflows have spiked to an average of $210 million per day. This radical change highlights a strong reaccumulation phase, in stark contrast to the selling pressures exerted by Bitcoin miningwhich imposes a daily selling pressure of approximately $32 million due to the halving event.
Although ETF flows have slowed slightly in recent weeks, the overall trend remains positive. According to data According to Farside Investors, ETFs have seen a net inflow of $122.1 million so far this week. This continued influx of capital indicates strong buy-side demand supporting the Bitcoin market.
On-chain analysis by Santiment also supports this trend, showing that Bitcoin wallets holding at least 10 BTC increased their holdings by 154,560 BTC over the past five months. This model of accumulation among the greatest wallet holders are a critical indicator of market sentiment, typically associated with bullish phases.
Learn more: Who owns the most Bitcoin in 2024?
“Historically, one of the main leading indicators in crypto has been the collective holding of wallets containing at least 10 Bitcoins (exchanges or otherwise). When they accumulate, cryptocurrencies rise. When they dump, prolonged bear markets occur,” Santiment explain.
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