Main navigation

Bitcoin Bull Run in Early Stages as Major Holders Accumulate: Bloomberg Analyst

Mon, 08/07/2023 - 08:47
article image
Alex Dovbnya
Bitcoin's bull run still in its infancy as major holders continue to amass digital asset, according to Bloomberg analyst Jamie Coutts
Bitcoin Bull Run in Early Stages as Major Holders Accumulate: Bloomberg Analyst
Cover image via
Read U.TODAY on
Google News

Bitcoin's bull run seems to be in its early stages as major holders are rapidly accumulating the digital asset, according to Bloomberg analyst Jamie Coutts.

A sharp increase in Bitcoin holdings among "residents," or long-term investors, is currently being observed, with these investors now possessing 74.8% of the entire Bitcoin supply.

Additionally, 30% of Bitcoin has been moved to cold storage since 2020, resulting in a reduced supply on exchanges, which now hold a mere 2.26 million Bitcoin.

Coutts suggests that Bitcoin is "fairly valued relative to the number of active entities on the network," as evidenced by the consistent z-score on the subchart.

Dogecoin Creator Reacts to DOGE Appearing in New Futurama Season

His simplified price-cycle model projects a Bitcoin price of around $39,000 by the fourth quarter of 2023, and an optimistic prediction of $92,000 by the end of 2025, provided active entities surpass 600,000.

There is also a notable increase in on-chain activity, as evidenced by the rise in ordinal inscriptions and BRC-20, a standard for tokens. "Transactions are averaging 4x the 2021/22 average of 100,000 per day, despite a fading since the initial craze in the first quarter," Coutts explains, demonstrating the ongoing surge in Bitcoin use.

Bitcoin's unprecedented low volatility

Despite these positive trends, it is also worth noting that Bitcoin's volatility is currently at an all-time low, according to 0.34, according to BitMEX's historical volatility index

As of now, Bitcoin is changing hands at $29,032.47, with a modest 24-hour trading volume of $7.2 billion.

This period of low volatility might be seen as a welcome respite for investors after the roller coaster ride that Bitcoin has often been associated with. However, many investors also assume that this unprecedented period of calm will be followed by a huge storm.

article image
About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at