Bitcoin Bull Market Is In Its Early Stages As Major Holders Accumulate: Bloomberg Analyst

Alex Dovbnya

According to Bloomberg analyst Jamie Coutts, the Bitcoin bull market is still in its infancy as large holders continue to accumulate digital assets

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According to Bloomberg analyst Jamie Coutts, the Bitcoin bull market appears to be in its early stages as large holders are rapidly accumulating the digital asset.

There is currently a sharp increase in bitcoin holdings among “residents”, i.e. long-term investors, with these investors now owning 74.8% of the total bitcoin supply.

Additionally, since 2020, 30% of bitcoins have been moved to cold storage, resulting in reduced supply on exchanges, which now have just 2.26 million bitcoins.

Coutts points out that Bitcoin is “fairly valued relative to the number of active units on the network” as shown by the consistent z-score in the sub-chart.

His simplified price cycle model projects Bitcoin price around $39,000 by the fourth quarter of 2023 and a bullish forecast of $92,000 by the end of 2025, assuming the number of active units exceeds 600,000.

There is also a notable increase in on-chain activity, evidenced by the increase in ordinal inscriptions and BRC-20, a standard for tokens. “Transactions are averaging four times the 2021-22 average of 100,000 per day, although they’ve been declining since the initial hype in Q1,” Coutts explains, highlighting the continued rise in bitcoin usage.

Bitcoin’s all-time low volatility

Despite these positive trends, it’s also worth noting that Bitcoin’s volatility is currently at an all-time low of 0.34, according to BitMEX’s historical volatility index.

Bitcoin is currently changing hands at $29,032.47, with a modest 24-hour trading volume of $7.2 billion.

This period of low volatility could be seen as a welcome respite for investors after the rollercoaster ride Bitcoin is often associated with. However, many investors also assume that this unprecedented period of calm will be followed by a violent storm.

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