Bitcoin Enters 7th Bull Cycle: Is Now the Time to Invest in Crypto?
By Bitcoin (BTC) is entering its seventh bull cycle, according to the head of Pantera Capital, Dan Morehead.[0] After a dismal year in 2022, Bitcoin has seen a modest rebound in 2023, though it is nowhere near its all-time high of over $68,000.[1] The crypto market has seen a large drawdown in the past few months, with the bear market lasting 376 days, more than the median drawdown length of 307 days. This bear market was the only one to completely wipe out the previous bull market, giving back 136% of the previous rally.[2]
Recent analysis by Bloomberg's senior strategist Mike McGlone suggests that those who buy and hold are likely to benefit in the current risk-asset situation, as opposed to those who speculate and leverage.[3] He cites rising volatility, typical of bear markets, as the reason.[3] McGlone has also suggested that more regulations may be coming to the industry in the near future, as there’s “so much adult supervision needed in crypto,” even though “people complain about regulation.”[4]
The Consumer Price Report (CPI) is due to be released on February 14th, and is a key indicator of the Federal Reserve’s next move in its efforts to combat inflation.[5] Generally, when the Consumer Price Index (CPI) falls short of predictions, it is viewed as a positive sign as it may cause the Federal Reserve to review its intense rate increases.[5]
Alex Krüger, an economist and trader, claims that Ethereum (ETH) and Bitcoin (BTC) may have additional downside potential but that a fresh crypto rally is close at hand.[6] Krüger attributed the decline in crypto prices to Kraken’s staking services being shut down by the US Securities and Exchange Commission (SEC).[6] However, according to his forecast, the cryptocurrency markets might recover as soon as the following few days.[6]
Thus, cryptocurrency investors should take note of the upcoming CPI report and be prepared for the potential implications it could have on the market. With a new bull market cycle on the horizon, now may be the ideal time to start investing in crypto.
0. “$4 Billion Crypto Fund Says Bitcoin ($BTC) Bottom Is in as Crypto Enters New Bull Cycle” CryptoGlobe, 15 Feb. 2023, https://www.cryptoglobe.com/latest/2023/02/4-billion-crypto-fund-says-bitcoin-btc-bottom-is-in-as-crypto-enters-new-bull-cycle
1. “This Top Investor Says Recent Crypto Rise Is a ‘Sucker's Rally.' Is He Right?” The Motley Fool, 6 Feb. 2023, https://www.fool.com/the-ascent/cryptocurrency/articles/this-top-investor-says-recent-crypto-rise-is-a-suckers-rally-is-he-right
2. “Is Bitcoin Entering Into A New Bull Run? Pantera Capital Weighs In” NewsBTC, 14 Feb. 2023, https://www.newsbtc.com/news/bitcoin/is-bitcoin-entering-into-a-new-bull-run-pantera-capital-weighs-in
3. “This Strategy May Benefit Current Crypto Market, Bloomberg's Senior Strategist Says” U.Today, 14 Feb. 2023, https://u.today/this-strategy-may-benefit-current-crypto-market-bloombergs-senior-strategist-says
4. “Bloomberg Analyst Issues Warning, Says Bitcoin Facing Massive Threat From Rate Hikes and Recession” The Daily Hodl, 13 Feb. 2023, https://dailyhodl.com/2023/02/13/bloomberg-analyst-issues-warning-says-bitcoin-facing-massive-threat-from-rate-hikes-and-recession/
5. “Economist Alex Krüger Issues Bitcoin and Ethereum Warning, Predicts When Next Crypto Rally Will Begin” The Daily Hodl, 11 Feb. 2023, https://dailyhodl.com/2023/02/11/economist-alex-kruger-issues-bitcoin-and-ethereum-warning-predicts-when-next-crypto-rally-will-begin/
6. “Economist Issues Warning Ahead of CPI Report on 14 February–Bitcoin and Ethereum in Trouble?” Coinpedia Fintech News, 12 Feb. 2023, https://coinpedia.org/news/economist-issues-warning-ahead-of-cpi-report-on-14-february-bitcoin-and-ethereum-in-trouble/
