Bitcoin Finally Enters Mid-Stage of Bull Market... Glassnode: 'A Carbon Copy of the 2021 Bull Run'

▲ Bitcoin (BTC)/AI Generated Image

Bitcoin (BTC) has entered a strong profitability zone according to on-chain metrics, completing a structural foundation for long-term growth.

CryptoPotato, a specialized cryptocurrency media outlet, reported on May 12 (local time), citing data from on-chain analytics firm Glassnode, that bullish signals in the Bitcoin market are becoming increasingly clear. As Bitcoin's price hovers near its all-time high, investor profitability is improving, and the overall market vitality is recovering. In particular, the Market Value to Realized Value (MVRV) metric exceeding historical averages suggests that the bull market has entered its mid-stage.

The accumulation by long-term investors is a key factor in securing the market's downside rigidity. The group of long-term investors holding Bitcoin for over 155 days is adopting a strategy of increasing their holdings rather than releasing their assets, despite recent price volatility. With the continuous increase in Bitcoin flowing out of exchanges, the shortage of liquidity supply is intensifying. Large-scale asset movements create an environment that reduces selling pressure during price rallies, enabling rapid price surges.

The qualitative change in capital inflow is also positive. Realized capitalization has reached a new peak, proving that new capital is continuously flowing into the market. The inflow of institutional funds through Bitcoin spot ETFs is stimulating individual investors' sentiment, creating a virtuous cycle. Analysts diagnose that the current market structure resembles the early stages of the 2021 bull market, with active revaluation of asset values underway.

The decrease in selling pressure from miners is also good news. Mining companies that have secured operational efficiency after the halving have shifted towards holding Bitcoin rather than dumping it on the market. Despite open interest remaining high, the risk of excessive leveraged liquidations has decreased, maintaining a healthy upward trend. Market participants are weighing the possibility of Bitcoin surpassing the $80,000 mark and entering a new price discovery phase.

Bitcoin is showing strong bullish signs, with technical breakthroughs aligning with improved on-chain metrics. As the confidence of long-term investors combines with institutional capital inflow, the risk of price decline is gradually decreasing. The current market structure remains in an energy accumulation phase, poised to overcome short-term volatility and move towards higher price targets.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*