Bitcoin’s sideways movement isn’t the most exciting thing currently happening in crypto. This pins down the whole market in the same sideways shuffle. Everybody is eagerly waiting for the bull run to start. However, this sideways movement or ‘chop’ is normal. We’ve seen it before.
So, let’s take a closer look at why Bitcoin’s sideways movement is normal.
Is Bitcoin’s Sideways Movement Normal?
Yes, Bitcoin’s sideways movement we currently witness is normal. Let me show you why. To do this, we need to look back at the last three halving events. Every time they happened, there has always been the same chop. So, let’s take a look.
- 2016 — Bitcoin saw 182 days of sideways movement after the halving. After that, the price started to go up.
- 2020 — Bitcoin’s sideways movement lasted 161 days this time around. That’s when the bull run started to take shape.
- 2024 — The last halving is only 116 days behind us, as of today. It seems we’re past the halfway mark for Bitcoin’s sideways movement.
Now, be aware, history doesn’t always repeat itself, but it does often rhyme. So, this can well be the boring part before the pump starts. See the charts below.
Source: X
Reasons to Remain Bullish
So, there are still enough reasons to remain bullish during this choppy period. Let’s dig right into some of these bullish reasons.
Institutions are investing more funds in crypto.
Bitcoin takes the lead here, for example with its spot ETFs. However, one to look out for is BlackRock. This is the biggest financial investment company. They take a major share in the Bitcoin and Ethereum spot ETFs. But that’s not all, they also invested heavily in RWA. This is currently one of the hottest sectors in crypto.
The Boston Consulting Group predicts a $16 trillion market by 2030. Furthermore, Goldman Sachs disclosed that they own $400 million in Bitcoin spot ETFs. They are also launching three tokenization projects by the end of the year.
Source: X
Global Liquidity Index Rising
When there’s more liquidity available, some of it flows back to crypto. That’s bullish and this should help a positive price development. The last crypto bull market was when there was more liquidity available. See the chart below. According to this chart, we may expect a peak deep into 2025.
Source: X
Various other bullish reasons float around. For example, the FTX and Mt. Gox repayments are starting. It’s expected that a high percentage of these repayments will flow back into crypto. For a closer look at this, see our dedicated video or article on this.
Conclusion
Bitcoin’s sideways movement is something we have seen before. There was a similar setup before the 2012, 2016, and 2020 bull runs. It always happens after the Bitcoin halving. You can see it as the chop before the storm. There are still plenty of reasons to be bullish.
Disclaimer
The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment and informational purposes only. Any information or strategies are thoughts and opinions relevant to accepted levels of risk tolerance of the writer/reviewers, and their risk tolerance may be different from yours.
We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments, so please do your due diligence.
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