What Stage of the Bitcoin Bull are We in? Are We Nearing The End Or Are We Just Getting Started?

According to Empire analyst Jason Yanowitz, Bitcoin’s current price levels are largely based on MicroStrategy’s massive Bitcoin purchases, while venture capital (VC) has yet to enter the market on a large scale.

Yanowitz emphasized that Bitcoin may still be in the early stages of its current cycle, excluding Strategy’s (formerly MicroStrategy) Bitcoin purchases since late last year, which have totaled over $20 billion.

“Right now, the market is still in a ‘player versus player’ (PvP) phase,” he said, suggesting that institutional adoption beyond MicroStrategy’s aggressive buying remains limited. CMS Holdings’ Dan Matuszewski echoed that sentiment, noting that the 2022 bear market is still in effect, leading to low market liquidity and a lack of large capital inflows.

“Right now, we have not seen any significant VC inflows into the cryptocurrency market, with the exception of a few select targets,” Matuszewski said.

As Bitcoin’s cycle progresses, debate over whether the market has peaked will likely intensify, but Matuszewski said new regulatory frameworks are just beginning to take shape and their implementation could act as a future catalyst for institutional capital inflows.

*This is not investment advice.