Some on-chain indicators and charts are showing signals that could signal the start of a new cryptocurrency bull cycle, according to the Delphi Digital co-founder.
Kevin Kelly of Delphi Digital, an institutional cryptocurrency research firm, said on Aug. 14 that the cryptocurrency market is cyclical and predictable, which “has a huge impact on the future development of the cryptocurrency market.”
“Evidence is mounting that we are in the early stages of a new cycle. Risk assets like stocks (and) cryptocurrencies have been sniffing this out all year.”
Kelly also shared a chart from Delphi Digital on Aug. 8, emphasizing that Bitcoin follows four-year cycles, with unique patterns that have reliably repeated over the past three cycles — Bitcoin suffered an 80% decline in its first year. It retraced, recovered to levels before hitting a two-year high, and then rose to a new all-time high in the fourth year.
The cryptocurrency market is highly cyclical.
Cryptocurrency market cycles are also very consistent.
But their alignment isn’t just a coincidence.
They are predictable.
If we are right, this could have a huge impact on the future of the cryptocurrency market.
Time to put out some charts…
— Kevin Kelly (@Kevin_Kelly_II) August 14, 2023
Kelly noted that Bitcoin cycle peaks also typically coincide with peaks in the Institute for Supply Management (ISM) manufacturing index, which tracks the health of the U.S. manufacturing and services sectors.
“Bitcoin price peaked around the same time the ISM was showing signs of topping. Active addresses, total transaction volume, total fees — they all peaked in the ISM as well.”
Kelly explained that when the business cycle starts to recover, so does the cryptocurrency market.
“Turning points in business cycles have historically been a ripe opportunity to increase exposure,” he added, “and it appears that ISM is approaching the final stretch of its two-year downtrend, with risky assets being sniffed out again. “
related: Analyst Suggests 5 Catalysts That Could Break Bitcoin and Crypto’s Coma
Bitcoin and cryptocurrency markets have been weak for the past five months or so, but analysts told Cointelegraph that several fundamental factors, including ETF approvals, the end of rate hikes and ethereum’s scaling upgrades, could bring them out of hibernation.
Magazine: ‘Wolf Of All Streets’ Concerned About Bitcoin Breaking $1M World: Hall of Flames
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