- By one measure, Bitcoin is only entering the second, more aggressive bullish phase of the cycle.
- The security and network foundations remained intact, which strengthened trust.
Bitcoin [BTC] reached its all-time high against the US dollar on March 14, 2024, reaching $73,777. Previously, Bitcoin’s all-time high was $69,000, set on November 10.
Relative to other fiat currencies, Bitcoin has already reached an all-time high. The Turkish lira, the Argentine and Philippine pesos and the Indian rupee are just a few examples.
This showed that the USD was experiencing lower inflation than these currencies, but also meant that Bitcoin is increasingly seen as an inflation hedge.
The reason behind the belief in Bitcoin
A recent AMBCrypto report examined the Thermo Cap ratio metric. The findings were that the network fundamentals were strong and the value invested in the network was growing steadily.
However, it was also noted that the Network Value metric for transactions decreased. This meant that users were not making enough transactions to justify the BTC prices. Growing investor confidence and the rise of the ‘inflation hedge’ argument.
Another report found that futures market participants remained sidelined and funding rates were subdued.
It took a strong bullish news release to shake Bitcoin out of its lethargy. The Inflow of $886 million in US Bitcoin ETFs on Tuesday, June 4 did just that.
Examining on-chain metrics to understand the bull run
In a message on X (formerly Twitter), crypto analyst Axel Adler pointed out that Bitcoin’s price performance on the higher time frames has not yet gone parabolic.
In the 2017-2018 period, 380 days of steady gains were followed by another 351 days of parabolic uptrend.
If this repeats, BTC could see another 12 months of uptrend.
The net unrealized gain/loss (NUPL) of the short-term holder (STH) has also not peaked. According to the analystthe price would have to rise above 0.4 to mark the end of the current bull run.
Read Bitcoin’s [BTC] Price forecast 2024-25
The highest level was 0.29 in March, followed by a major correction as BTC consolidated over the past two months.
Therefore, Bitcoin’s all-time high from now on is most likely just a matter of time.