Blockchain analytics firm Glassnode believes that Bitcoin (BTC) is still in the early stages of a bull run, despite recent price declines.
On-Chain Metrics Suggest Continued Euphoria
Glassnode analyzed on-chain metrics and found that Bitcoin’s current price correction is relatively mild compared to previous market cycles. The firm argues that the magnitude of price drawdowns has been historically small, indicating that the crypto king is still in the “euphoria phase” of its bull run.
Spot Market Driving Bitcoin’s Strength
Glassnode attributes Bitcoin’s strength over the past year to inflows from the spot market. The firm also notes that new demand from fresh entrants is supporting the current correction.
Long-Term Holders and New Demand Balanced
The balance of wealth between long-term holders and new demand is approximately equal, suggesting that the euphoria phase is still relatively early. Glassnode believes that this indicates a potential for further price appreciation in the future.
