Bull Market Could Continue to Expand

Wednesday morning during U.S. trading hours saw a slight intensification in the retreat of cryptocurrencies from their recent significant surge, with Bitcoin dipping nearly 2% to just over $107,000.

Other cryptocurrencies struggled even more, as XRP, Solana, and Dogecoin experienced declines ranging from 3% to 5%.

In the crypto stock market, Bitcoin mining companies faced the largest setbacks, with shares of MARA Holdings, Riot Platforms, and Hut 8 each dropping by nearly 10%.

Significant losses were also evident among companies holding Bitcoin, notably GameStop, which fell by 11% following its announcement of acquiring over 4,710 Bitcoin (approximately $500 million at current prices) — a figure many deemed disappointing given the company had secured $1.3 billion earlier for Bitcoin purchases.

Some market players are speculating whether the current cycle has ended after Bitcoin’s roughly 50% climb from its early April low to a record high of $112,000 last week, drawing parallels to the market exuberance seen in 2021.

However, the research division at NYDIG advises caution against jumping to conclusions.

They point out that while Bitcoin has risen about sevenfold from its November 2022 low of around $15,000 — an impressive increase — it remains considerably short of earlier peak-to-trough performances, which were 452X in 2013, 112X in 2017, and 20X in 2021. Despite Bitcoin’s maturation as an asset, even a 20X jump might still be seen as significant, indicating that there could be more growth ahead.

The NYDIG team also assessed the Market Value to Realized Value (MVRV) ratio, which compares the overall market cap of Bitcoin to their total worth at the last price movement. This ratio currently stands at 2.4X, significantly lower than previous highs, including the 4.0X peak of 2021.

“While these are merely rough indicators, they imply that Bitcoin still has considerable room for upward movement,” concluded the NYDIG analysts.