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As geopolitical tensions shake traditional markets, bitcoin continues to demonstrate its resilience with a remarkable cyclical performance. According to Glassnode, the leading crypto shows a gain of 656% since 2022, a progression that attracts analysts’ attention.
In Brief
- Bitcoin has recorded a 656% increase since the start of its cycle in 2022.
- This figure, although lower than previous cycles, remains significant given the maturity of the asset.
- Bitcoin ETFs attract more than 1.3 billion dollars despite geopolitical tensions.
- Bitcoin’s 2 trillion dollar market capitalization structurally changes its growth outlook.
Strong demand for Bitcoin despite a less explosive cycle
Glassnode, in its analysis of June 14th, looks back at the cyclical evolution of bitcoin since 2015. The leading crypto is currently going through its third major bull cycle.
The two previous ones, between 2015 and 2018 and then between 2018 and 2022, delivered spectacular performances of +1,076% and +1,007%. The current cycle, started in 2022, currently shows a progression of +656%. Less explosive? Yes. Less significant? Far from it.
The recent Glassnode report highlights that bitcoin has changed scale. This apparent moderation is explained by a simple reality: “Generally, assets see their exponential growth potential decrease as their valuation increases“, the analysis reminds.
This is typical of mature markets. The example of gold is enlightening: considered a pillar of value reserve, it has only increased by 192% over the last ten years.
The comparison makes sense when considering bitcoin’s current market capitalization, now over 2 trillion dollars. Such a weight mechanically limits the speculative bursts of the past.
But this “normalization” of performance also reflects its rise as a credible financial asset, adopted by a growing number of institutional investors.
This momentum is also driven by tools like the Bitcoin ETFs, available since January 2024. In a few months, they have captured billions of dollars, facilitating BTC exposure for more traditional portfolios.
A safe haven asset that resists geopolitical turbulences
The timing of this analysis comes in a particularly tense geopolitical context. Israeli strikes on Tehran, under normal circumstances, should have triggered a wave of panic in so-called “risky” asset markets.
Yet, bitcoin only dropped 3% before regaining stability around 106,000 dollars. A measured reaction that sharply contrasts with the shocks observed in traditional markets.
This resilient behavior reveals a profound shift in the perception of bitcoin. Far from fleeing, capital flows in: Bitcoin ETFs have just recorded their fifth consecutive day of net inflows, totaling over 1.3 billion dollars, according to data from Farside Investors.
At the same time, the Crypto Fear & Greed Index remains perched at 61, a sign that institutional investors’ confidence – or greed – remains intact.
This contrast is all the more striking as the Dow Jones lost 600 points and the dollar’s DXY index fell below 100, a symbolic threshold that reflects a retreat of the greenback in global markets.
In this uncertain environment, bitcoin no longer seems to be perceived as a speculative asset, but as a hedging tool against monetary and geopolitical tensions.
Granted, daily trading volumes are notably down (-35.39% over 24 hours), which may indicate a cautious phase. But inflows on platforms, up by 2.4 billion dollars, show that some investors are seizing the opportunity to secure their gains or readjust their positions.
Bitcoin’s cyclical gain of 656% perfectly illustrates its transition to a mature asset, capable of generating substantial returns despite its growing market capitalization. This performance, coupled with its resilience against geopolitical tensions, confirms its status as a credible alternative to traditional safe haven assets.
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Passionné par le Bitcoin, j’aime explorer les méandres de la blockchain et des cryptos et je partage mes découvertes avec la communauté. Mon rêve est de vivre dans un monde où la vie privée et la liberté financière sont garanties pour tous, et je crois fermement que Bitcoin est l’outil qui peut rendre cela possible.
DISCLAIMER
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.
