CryptoQuant: Bitcoin Bull Market Far from Over, New Investment Inflows Still at Lower Levels

According to a report by CryptoQuant, a blockchain data analysis company, the Bitcoin bull market cycle is not yet over, as investment flow from new investors is still relatively low and the valuation indicators are still below the levels seen during previous market peaks.

Data from CryptoQuant’s weekly cryptocurrency report shows that currently, 48% of Bitcoin investments come from short-term holders. Analysts indicate that during the end of a bull market cycle, typically 84% to 92% of investments come from these new investors. The report from CryptoQuant states:

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The above chart also shows that this indicator has reached a level similar to mid-2019 (52%), when Bitcoin also experienced a significant correction. Short-term traders should take note of this.

The CryptoQuant report also reveals that the Bitcoin valuation indicators are still below the levels seen during previous market tops. The report states:

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The CryptoQuant Profit and Loss Index is composed of three on-chain indicators that demonstrate Bitcoin’s profitability. This index previously indicated that the cryptocurrency market would enter a bullish cycle in 2024. However, the current level is slightly lower than the levels observed during the peak periods of the bull runs in 2013, 2017, and 2021.

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