Bitcoin is Down 20% from March, but Glassnode Analysts Remain Very Bullish – Find Out Why

Bitcoin recently experienced a significant correction of over 20% from its all-time high, following the FTX crash in November 2022. Despite this dip, Glassnode analysts remain cautiously optimistic about the cryptocurrency’s future. The blockchain analytics platform notes that Bitcoin’s macro uptrend is resilient, with corrections being relatively shallow and liquidity rising to reduce volatility. While price action structure may offer support, triggers for price rallies are likely to come from fundamental factors and market events.

Glassnode’s observation of a robust macro trend indicates a bullish outlook for Bitcoin, with reduced volatility helping to maintain the uptrend and suggesting a more mature market supported by institutional investors. One such sign of confidence is the accumulation of Bitcoin by whales, with one whale purchasing over 100 BTC in a week and more than 7,257 BTC this month. This aggressive accumulation implies that Bitcoin may be undervalued, even at multi-year highs, and could lead to further price increases.

Recent developments, such as former US president Donald Trump accepting crypto donations and European regulators considering approving Bitcoin as an investable asset in funds, indicate positive trends for the cryptocurrency. If approved, this move could attract billions of dollars from European institutions into Bitcoin, following the lead of banking giants like Morgan Stanley and BNP Paribas, which are already exploring investment options in BTC. Additionally, the increasing M2 money supply in the US and concerns about high inflation from the Federal Reserve may further drive demand for Bitcoin as a safe haven asset and hedge against inflation.

Overall, despite the recent correction, Bitcoin’s long-term outlook remains positive, with Glassnode analysts expressing cautious optimism about the cryptocurrency’s resilience in the face of market fluctuations. The accumulation of Bitcoin by whales and increasing interest from institutional investors suggest growing confidence in the digital asset, while recent developments such as Trump’s acceptance of crypto donations and European regulatory support could bring additional bullish momentum to the market. With potential tailwinds from macroeconomic factors like inflation concerns and institutional adoption, Bitcoin may continue to attract both retail and institutional investors seeking exposure to the digital asset.