Bitcoin is Back Into Early Bull Market Territory: Glassnode

According to blockchain analytics firm Glassnode, Bitcoin has returned to early bull market territory. This means that the cryptocurrency is experiencing a significant upward trend, similar to the beginning of a bull run. The firm cites factors such as increased institutional adoption and growing demand as contributing to this resurgence. Bitcoin’s price has been steadily rising in recent months, reaching over $60,000 in mid-March before experiencing a slight pullback. However, with the current market conditions, many experts believe that Bitcoin’s rally is far from over. This news is sure to attract the attention of investors and crypto enthusiasts alike.

Bitcoin is seeing a major surge in its value and many believe that it is entering an early bull market. As Bitcoin tops a 9-month high above $28,000, on-chain signs continue to indicate that the cryptocurrency is poised for a strong upward trend. Glassnode, a blockchain analytics company, recently reported that the Bitcoin market seems to be shifting gears. Rising activity is driving network congestion and fee pressure, which Glassnode suggests is a common precursor to more constructive markets.

The blockchain analytics firm also reported that Bitcoin’s monthly average transaction count this week reached 309.5k/day, which is its highest level since Bitcoin surged to $64,000 in April 2021. Over 122,000 new entities (unique new users) are appearing on the chain daily, which is higher than nearly 90% of all other days (mostly concentrated around Bitcoin’s price peak in late 2017, and the previous bull run from 2020/2021).

High network fees can make small transactions more costly, but they’re also beneficial for miners who are receiving them for securing the blockchain. After a string of insolvencies plagued the industry last year, miner revenue has now returned to its highest point since June 2022, indicating that Bitcoin is back in a bullish trend.

Glassnode also reported that Bitcoin’s MVRV (market-value-to-realized-value) ratio, which is a measure of the unrealized profit multiple held within the coin supply, has risen to 1.36. After surpassing $27,000 this week, the ratio returned to its “neutral zone,” meaning prices are no longer heavily discounted relative to the average on-chain market cost basis.

Although more coins are in profit, most HODLers (long-term investors holding Bitcoin) are not selling their stash for profits. The proportion of “hot coins” – coins transacted within the past 7 days – still remains “close to cycle lows.” According to Glassnode, this signals remarkable strength and a reflection of the beliefs held about Bitcoin’s important role in the future of the global financial system.

The Federal Reserve has taken multiple measures to backstop commercial banks with liquidity following the fall of Silicon Valley Bank (SVB), the second-largest bank collapse in the history of the United States. These measures have been bullish for both Bitcoin and gold prices. As more people interact and transact within the Bitcoin economy, it is typically associated with periods of increasing adoption, network effects, and investor activity. All of these on-chain factors seem to be pointing towards a bullish market for Bitcoin in the near future.

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