Research Summary
The report discusses the current state of Bitcoin. The report suggests that Bitcoin prices are consolidating around the $30k mid-point of the 2021-23 cycle, with year-to-date price performance remaining historically strong. Inscriptions have cooled off significantly and Bitcoin network congestion is starting to clear. However, monetary transfer volumes are increasing, now up +75% since the November lows. The balance of supply held in-profit vs in-loss has reached an equilibrium point synonymous with the several month long ‘re-accumulation period’ seen in past cycles.
Actionable Insights
- Monitor Bitcoin Price: Bitcoin prices are consolidating around the $30k mid-point of the 2021-23 cycle. This could be a potential entry or exit point for investors.
- Track Inscriptions: Inscriptions have cooled off significantly. This could indicate a slowdown in Bitcoin network activity.
- Observe Monetary Transfer Volumes: Monetary transfer volumes are increasing, now up +75% since the November lows. This could suggest a return back towards a dominance of BTC monetary transfers.
- Assess Supply Balance: The balance of supply held in-profit vs in-loss has reached an equilibrium point. This could indicate a potential ‘re-accumulation period’ for Bitcoin.
