Strong demand for $BTC despite a less explosive cycle

Glassnode, in its analysis of June 14th, looks back at the cyclical evolution of bitcoin since 2015. The leading crypto is currently going through its third major bull cycle.

The two previous ones, between 2015 and 2018 and then between 2018 and 2022, delivered spectacular performances of +1,076% and +1,007%. The current cycle, started in 2022, currently shows a progression of +656%. Less explosive? Yes. Less significant? Far from it.

The recent Glassnode report highlights that bitcoin has changed scale. This apparent moderation is explained by a simple reality: “Generally, assets see their exponential growth potential decrease as their valuation increases“, the analysis reminds.

This is typical of mature markets. The example of gold is enlightening: considered a pillar of value reserve, it has only increased by 192% over the last ten years.

The comparison makes sense when considering bitcoin’s current market capitalization, now over 2 trillion dollars. Such a weight mechanically limits the speculative bursts of the past.

But this “normalization” of performance also reflects its rise as a credible financial asset, adopted by a growing number of institutional investors.

This momentum is also driven by tools like the Bitcoin ETFs, available since January 2024. In a few months, they have captured billions of dollars, facilitating BTC exposure for more traditional portfolios.