According to Jamie Coutts, a Bloomberg analyst, the bull run for bitcoin appears to be just getting started as significant investors are grabbing control of the digital currency quickly.
Long-term investors, or “residents,” have dramatically increased their Bitcoin holdings recently, and they now own 74.8% of the total supply.
Additionally, since 2020, 30% of Bitcoin has been transferred to cold storage, reducing the amount available on exchanges, which now only hold 2.26 million Bitcoin.
According to Coutts, Bitcoin is “fairly valued relative to the number of active entities on the network,” as seen by the subchart’s constant z-score.
His condensed price-cycle model predicts that Bitcoin would cost roughly $39,000 by the fourth quarter of 2023 and, on the optimistic side, $92,000 by the end of 2025, assuming that there are more than 600,000 active organisations.
Additionally, there has been a noticeable uptick in on-chain activity, as seen by the growth of ordinal inscriptions and the BRC-20 token standard. “Transactions are averaging 4x the 2021/22 average of 100,000 per day, despite a fading since the initial craze in the first quarter,” Coutts said, illustrating the continuous growth in Bitcoin use.
Bitcoin’s unprecedented low volatility
Despite these encouraging developments, it’s important to remember that, according to BitMEX’s historical volatility index, Bitcoin volatility is now at a record low of 0.34.
The current price of Bitcoin is $29,032.47, and its 24-hour trading volume is only $7.2 billion.
After the roller coaster ride that Bitcoin has frequently been linked with, this time of low volatility may be considered as a pleasant break for investors. However, many investors also believe that a severe storm will come after this unheard-of period of quiet.
