Bitcoin Metrics Healthier Than Previous Cycles, QCP Projection Ignite Bulls

QCP analysts highlighted upsides in Bitcoin’s (BTC) recovery compared to previous cycles largely driven by speculation. The recent price rally and decoupling from gold further entrenched its deepened demand among institutional and retail investors. Sitting comfortably above $100k, BTC traders project fresh gains as institutional inflows continue for the second consecutive week.

Macro Sentiments Trigger BTC Demand

This month, Bitcoin has recorded tremendous growth after a sustained recovery. The massive inflows led to decoupling from correlated assets while larger investors embrace its utility as a store of value. Initially, the crypto leader moved alongside gold and not equities, pointing to the latter’s reduced pressure on a BTC surge.

After recent macro events jolted financial markets, the assets sustained recovery, and recovery is now seen as a hedge. Last week saw billions poured into the crypto market, with new institutions leading the pack. The asset also outpaced gold in the same time frame, further backing the narrative. Simultaneously, the options market is rebounding, tipping a major price growth based on present factors.

“But is BTC truly “digital gold”? Not quite. Midweek, BTC pivoted, decoupling from gold and rallying alongside equities, largely in response to headlines surrounding “21 Capital.” This flip-flopping between safe-haven and risk-asset behaviour suggests that traditional correlation frameworks are becoming less instructive. Instead, market participants are now focused on the durability of BTC’s “up only” trend, QCP added.

On-chain factors and institutional demand make this surge healthier than other cycles. Traditional investors have increased their appetite for Bitcoin in the last two weeks. Last week, it was reported that Cantor Fitzgerald, alongside Tether, Bitfinex, and SoftBank, partnered to launch a new venture, 21 Capital. The firm is expected to receive $3 billion from its partners to acquire Bitcoin, similar to Michael Saylor’s Strategy model.

Market At Critical Point

Despite positive factors ranging from recovering prices to whale inflows and positive macro trends, Bitcoin traders face new resistance due to short-term profit taking. Crypto analyst BorisVest explained that the market has entered a stagnation phase. After the BTC price slumped below $80k, many traders bought the dip, taking the asset above $100k. 

This growth ushered in profit-taking, and if not fully absorbed, could trigger new sell-offs. Furthermore, centralized exchange reserves, which took a nosedive are now relatively stable hindering another massive swing. At the time of writing, Bitcoin price leaped 9.6% in the last seven days.