The current trend is remarkably similar to Bitcoin's previous cycles. As of right now, the drawdown from BTC's all-time high is 37%. In the last cycle, it was down 39% after the same amount of time. In the 2013-2017 cycle, it was down – 42%.

The calculation from the local low shows similar dynamics. The exception is the first two spikes when Bitcoin's growth was stronger due to the newness of the market.

However, there are also some differences between cycles, although they support the abovementioned exceptions. First, the maximum drawdown after reaching the local low in the 2022+ cycle is only 20.1%. In previous periods, it ranged from 36% to 71.2%. Low values indicate the strength of the new bullish push.

Second, the average deposit volume (note: Glassnode equates the figure to the average deposit size) on crypto exchanges has already approached absolute highs and stands at $29,000. The decline in the number of transactions going into crypto exchanges indicates the predominance of significant capital in the inflow.

This is also confirmed by the new record in the total inflow and outflow of funds from crypto exchanges from the total network volume. The indicator exceeded 72%.

All this indicates an increased interest in Bitcoin transactions among major market participants, with institutional investors directly or indirectly predominating.

Franklin Templeton CEO Jenny Johnson noted the increased interest from institutional investors in a recent interview:

There's obviously a demand for Bitcoin, and I believe a spot ETF is a better way to access Bitcoin.

Franklin Templeton is an investment company with $1.4 trillion in assets under management. In September, the company joined the list of applicants seeking approval to launch spot Bitcoin ETFs. Bloomberg analysts put the probability of the first ETFs being approved by 10 January at 90%.

StormGain Analytical Group 
(platform for trading, exchanging and storing cryptocurrency)

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