Originally published on: October 03, 2024
Bitcoin’s upward trajectory in the market has hit the fast lane, racing ahead of its historical patterns by 100 days, as per a recent report by CoinMarketCap (CMC).
The digital currency, currently priced at $60,625.77, is showing signs of breaking away from its traditional four-year cycle and gearing up to enter a supercycle, as indicated in CMC’s third-quarter market research report unveiled on Oct. 3.
CMC Research highlights various factors suggesting Bitcoin’s transition towards a supercycle, attributing it to growing institutional adoption, the emergence of BTC exchange-traded funds (ETFs), and shifting market dynamics.
Traditionally, Bitcoin’s four-year cycle is closely linked to Bitcoin halving events, where miner rewards reduce every four years or after the mining of 210,000 new BTC blocks. Typically, these halving events trigger significant price impacts, with bull markets historically reaching their peak between 518 to 546 days following such events.
However, given Bitcoin’s current price performance and the most recent halving on April 20, 2024, CMC predicts a potential BTC all-time high much earlier than anticipated.
With a 40.66% bullish cycle advancement, CMC suggests that Bitcoin might be deviating from its standard four-year cycle. Factors contributing to this potential shift include Bitcoin’s increasing correlation with traditional assets like gold and tech stocks, along with rising institutional adoption by companies such as MicroStrategy and Semler Scientific.
Moreover, the spurring acceptance of Bitcoin in the financial sector is underlined by a recent Forbes article titled “Why Bitcoin is becoming a part of traditional finance.”
In the report, CMC also lists the top five active sectors within the crypto industry, with meme coins and Ethereum leading the pack.
Despite a rally towards the end of the third quarter, CMC highlights 16 sectors facing at least a 10% market cap decline in Q3, with storage, lending, and privacy sectors experiencing the most substantial losses.
DeFi and infrastructure sectors have struggled amidst a bearish Q3 market, with a notable shift towards more consumer-focused segments like artificial intelligence, media, and memes.
One interesting insight from the report reveals that the United States continues to dominate the global crypto user base, holding a 17% market share. India follows as the second-largest country for crypto users, surpassing Brazil at third place.
Across regions, Bitcoin emerges as the most favored cryptocurrency in Q3, with Ether, Solana, and Toncoin also making significant strides globally.
As Bitcoin accelerates into uncharted territory, the market eagerly anticipates its next move in this rapidly evolving landscape.
