Is A Bitcoin Price “Double Bubble” Imminent?

Is A Bitcoin Price “Double Bubble” Imminent?

With the bitcoin price hovering near $50,000, it appears a 2013-style “double bubble” is in the cards.

The below is from a recent edition of the Deep Dive, Bitcoin Magazine‘s premium markets newsletter. To be among the first to receive these insights and other on-chain bitcoin market analysis straight to your inbox, subscribe now.

With the price of bitcoin hovering near $50,000, momentum has returned to the market and strong hands have accumulated more bitcoin than ever. A 2013-style double bubble is in the cards.

The 2013 cycle saw the price of bitcoin draw down 75% from the highs before rallying a staggering 1,750% in less than six months. We aren’t suggesting that the rally will occur again with the same performance, but rather an explosive “double bubble” within the traditional four-year boom-and-bust cycle.

The market has gone through quite a similar cycle compared to 2013 as well, with an initial parabolic run up, a large amount of coins becoming liquid before an aggressive reaccumulation and parabolic run up.

Bitcoin: Illiquid Supply Change 2013 

If bitcoin continues to transfer to strong hands at the current pace, a parabolic run-up will commence that most in the world cannot fathom. Bitcoin, at nearly a $1 trillion asset today, can elevate to a $5 trillion asset in 2022 with relative ease.

After all, $1 of capital that flows into bitcoin adds far more than just $1 of market cap to the asset, and during a bull market when most market participants are holding, the market value to realized value of bitcoin explodes upwards. If 1% of capital flows out of global debt funds into bitcoin as a safe haven, as the global economy experiences massive supply chain disruptions causing rising prices across the board.

Did you like this?
Tip Bitcoin Tradeboard with Cryptocurrency

Donate Bitcoin to Bitcoin Tradeboard

Scan to Donate Bitcoin to Bitcoin Tradeboard
Scan the QR code or copy the address below into your wallet to send some bitcoin:

Donate Bitcoin Cash to Bitcoin Tradeboard

Scan to Donate Bitcoin Cash to Bitcoin Tradeboard
Scan the QR code or copy the address below into your wallet to send bitcoin:

Donate Ethereum to Bitcoin Tradeboard

Scan to Donate Ethereum to Bitcoin Tradeboard
Scan the QR code or copy the address below into your wallet to send some Ether:

Donate Litecoin to Bitcoin Tradeboard

Scan to Donate Litecoin to Bitcoin Tradeboard
Scan the QR code or copy the address below into your wallet to send some Litecoin:

Donate Monero to Bitcoin Tradeboard

Scan to Donate Monero to Bitcoin Tradeboard
Scan the QR code or copy the address below into your wallet to send some Monero:

Donate ZCash to Bitcoin Tradeboard

Scan to Donate ZCash to Bitcoin Tradeboard
Scan the QR code or copy the address below into your wallet to send some ZCash: