Bitcoin Bull Run Unperturbed Despite Dip, CryptoQuant Report Suggests

Amidst the recent dip in Bitcoin's price, a new report suggests that the crypto bull season is far from over. On-chain intelligence firm CryptoQuant analyzed investment flows and found that the share of inflows from new investors is below levels seen at previous price peaks. This, along with other metrics, indicates that the current price pullback is a correction rather than the end of the bull market.

Bitcoin's Bullish Run Continues Despite Recent Pullback: CryptoQuant Report

Introduction

The recent surge in Bitcoin's value, which peaked at an all-time high of $73,000 in March, sparked questions about the longevity of the cryptocurrency's bullish momentum. However, a recent report from CryptoQuant, an on-chain intelligence firm, suggests that the Bitcoin bull market is far from over.

CryptoQuant's Report: Bull Season Far from Finish Line

The report, released last week, analyzed investment flows into Bitcoin and concluded that the bull season is still in its infancy. It highlighted several key factors that support this assertion.

Firstly, the report notes that the inflow of new investment into Bitcoin from retail investors remains relatively low. This is in contrast to previous bull markets, where up to 92% of cash flow originated from new buyers. Currently, only 48% of Bitcoin's inflows are attributed to new investors.

Secondly, the report examines price valuation metrics and finds that they are below levels observed during previous bull market peaks. This indicates that Bitcoin is not yet overvalued and has room for further growth.

Bitcoin's Recent Pullback: A Correction, Not a Reversal

The report interprets the recent pullback in Bitcoin's price as a temporary correction rather than a sign of a market reversal. Kafkas Sönmez, Global Growth Director at Gate.io, compares the current situation to a similar correction Bitcoin experienced in 2019.

"In 2019, Bitcoin underwent a significant correction, losing up to 52% of its value," Sönmez notes. "However, it subsequently rebounded and gained over 400% since then. We believe it is crucial for investors to remain optimistic about the future of the market and view this pullback as a profit-taking opportunity."

Bitcoin Millionaires and Whale Activity

Sönmez also highlights the significant wealth created during Bitcoin's bull season. A report released at the time of Bitcoin's $73,000 peak estimated that 1,500 new millionaires were minted each day.

"While the identities of these individuals remain unknown due to the privacy of wallets, it demonstrates the potential of Bitcoin as a tool for rapid wealth accumulation," Sönmez says.

He adds that the slow growth in Bitcoin millionaires is primarily attributed to profit-taking by whales and the influx of new investors who have yet to enter the market.

Upcoming Halving Event: A Potential Catalyst

Sönmez reminds investors of the upcoming halving event, scheduled for mid-April. This event will reduce the rewards given to miners by 50%, potentially leading to a supply shortage and increased demand for Bitcoin.

"If Bitcoin's price remains at current levels, the halving event could provide further impetus for price appreciation," Sönmez says.

In conclusion, the CryptoQuant report suggests that the Bitcoin bull season is far from over, despite the recent pullback. Factors such as low investment inflow from new investors, undervaluation metrics, and the upcoming halving event indicate that Bitcoin has potential for continued growth.