Bitcoin Indicator Suggests Bull Market Is Still in Early Phase – CoinDesk
The ratio rose above 2.4 on Dec. 1, 2017, following which bitcoin doubled in value to $20,000 in just two weeks before falling back to $12,000 on Dec. 22. Similar price action was observed in April and November 2013 after the ratio rose above 2.4. Bitcoin also topped out at $13,880 at the end of June 2019 with the ratio rising above 2.4.
According to Nischal Shetty, CEO of Mumbai-based crypto exchange WazirX, bitcoin is replicating price moves seen following previous halvings – four-yearly reductions in the rewards for miners. The cryptocurrency underwent its third halving on May 11, when prices were around $8,600.
While the recent sharp rise from $10,000 looks similar to the surge from $6,000 to $20,000 seen in November-December 2017, this time may be different. Institutions appear to have been the primary drivers of the latest rally, while the one seen three years ago was driven by speculative frenzy and panic buying by retail investors.
This content was originally published here.