Bitcoin's Explosive Growth May Be a Thing of the Past, Analyst Suggests

An analyst at Crypto Rover suggests that Bitcoin's explosive growth may be a thing of the past. According to Ju, the market has changed since Bitcoin was a small-cap asset dominated by retail investors. Speculative capital would drive prices to dizzying heights and then cause them to plummet by 80 per cent.

However, with the growing proportion of institutional investors in the market, growth is being smoothed out, and falls are also becoming less pronounced. The PnL Index, which tracks aggregate returns of holders, shows that peaks of cycles are becoming less pronounced, while troughs are forming at a higher level of profitability.

Another argument made by Ju is related to the MVRV ratio, which has never fallen below 1 in the current cycle. This means that even at its lows, Bitcoin remained above the average on-chain purchase price of coins, with investors cutting their losses but holders as a whole remaining profitable.

The analyst highlights several signs pointing to a bullish market: realised capitalisation is rising, long-standing 'whales' have stopped selling, and major players in the futures market have built up large long positions near the bottom. The 365-day moving average of the PnL Index is also showing a marked reversal.