Bitcoin Market Shows Signs Of Pre-Storm Calm

Cryptocurrency investors are facing another period of uncertainty. After a turbulent October marked by a significant downturn, the cryptocurrency market presented mixed signals in the first half of November.

The partial government shutdown in the United States, disrupting the release of key macroeconomic data, has created an environment of uncertainty. While cryptocurrencies, including Bitcoin, have experienced losses amid these developments, some analysts remain optimistic about the near future.

Cryptocurrency analyst Egrag examined past Bitcoin bull markets, noting that cycles are lengthening with each halving event. According to Egrag, this model has consistently held since 2011: “The first cycle lasted 742 days, while the 2017 cycle extended to 1,064 days. The current fourth cycle has surpassed 1,078 days and, with an average additional extension of 160 days, a new peak could be seen around March 2026.” He added, “This is a natural consequence of Bitcoin becoming a more mature and stable market compared to the past.”

Egrag pointed out that Bitcoin has generated significant gains since late 2022 but stated that “the steepest and fastest rise of the bull cycle has yet to come.” He emphasized that sharp rallies have historically followed prolonged consolidation periods.

CryptoQuant analyst MorenoDV suggested that the current market lull could be a “storm before the calm.” According to Moreno, the stablecoin reserve ratio (SSR) – the ratio of Bitcoin’s market capitalization to the total value of all stablecoins – has fallen back to historical lows.

“The SSR is currently at 13, indicating a record level of stablecoin reserves relative to Bitcoin,” Moreno explained. “This situation has occurred in mid-2021 and early 2024, both of which were followed by strong rallies.”

Moreno highlighted that stablecoin reserves are increasing on the Binance exchange while Bitcoin reserves are decreasing, a pattern that “typically emerges when sellers are exhausted and strong investors quietly begin accumulating.” He characterized the current setup as an “opportunity phase with limited downside risk and expanded upside potential.”

Singapore-based investment firm QCP Capital emphasized that Bitcoin’s price movements are increasingly influenced by macroeconomic factors. The firm described the temporary prevention of a government shutdown as a “classic kick-the-can policy.”

Source: www.coinkolik.com

Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility.