James Check, an analyst from the cryptocurrency data firm Glassnode, shared insights on Bitcoin‘s enduring strength in a recent interview. Despite reaching new all-time highs, Bitcoin has maintained a strong market presence. Check highlighted that current trends suggest the cryptocurrency bull market could extend beyond previous expectations.
Bitcoin Sustains Bull Run in Distribution
According to Check, Bitcoin is now in what’s known as a “bull market distribution phase,” which traditionally occurs when long-term holders sell off their coins for profits, often at the peak of the market cycle. Contrary to past trends, Check anticipates an extended bull run, thanks to solid investments flowing from newly launched spot Bitcoin Exchange-Traded Funds (ETFs) by financial institutions such as BlackRock and Fidelity in the United States.
These institutional-grade investment products have attracted considerable interest, amassing over $9 billion in net inflows. This robust institutional demand via spot Bitcoin ETFs is a significant factor in Bitcoin’s current market stamina, despite being in a phase where distribution is generally expected.
Bitcoin’s Path to a Quarter Million Dollar Valuation
Check underscored the indication of sustained demand for Bitcoin by analyzing on-chain data, particularly the “realized cap” metric. This metric, which measures the total value of all coins at the latest transaction prices, shows all-time highs, signaling consistent demand without the influence of speculative, unrealized gains. This observation is a cornerstone of Check’s analysis and optimism regarding Bitcoin’s potential growth.
Considering the strong demand, alongside the current market trends, Check predicts a bullish future for Bitcoin. He believes the leading cryptocurrency may well reach a peak value of $250,000 in this cycle. This projection is based on the market’s structure, the gradual accumulation of Bitcoin by both individual and institutional HODLers, and the absorption of circulating supply, which supports a higher peak price.