Bitcoin's performance in the current bull market, along with a new cohort of buyers, is indicative of a maturing market and widening adoption, according to a recent report from Fidelity Digital Assets. The report highlights a 50% rise in Bitcoin's hashrate and a 63% jump in Realized Cap, demonstrating investors' confidence in the cryptocurrency.

At block height 892,500, marking 25% progress into the current halving epoch, Bitcoin traded between $82,500 and $85,000, representing a 31% increase from its value on April 19, 2024, after the fourth halving reduced block rewards to 3.125 BTC. This phase of Bitcoin's halving cycle is characterized by steadier and more measured growth, unlike previous cycles marked by post-halving rallies.

Fidelity's senior research analyst Daniel Gray emphasized Bitcoin's network resilience, noting the surge in hashrate post-halving, signaling strong miner commitment despite reduced rewards. The Puell Multiple, an indicator of miner revenue relative to Bitcoin's price, has stabilized, suggesting that the market is adjusting to lower issuance without significant volatility.

The report explains that Bitcoin's more subdued returns in this cycle likely reflect a market digesting various external factors, causing some uncertainty. Historically, this mid-epoch phase has coincided with new all-time highs, which occurred recently. Fidelity anticipates that this growth trend could extend into Q2 2025, potentially solidifying Bitcoin's position as a credible asset class in modern portfolios.

The Realized Cap metric, measuring cumulative net capital inflows, has surged 63% since the 2024 halving, reaching $915 billion from $561 billion, showcasing the significant capital inflow into the market. This trend aligns with Bitcoin's long-term trajectory, where Realized Cap has increased with each halving, indicating a maturing asset with substantial growth progression.

The current bull market cycle is also characterized by record levels of institutional investor and corporate-level participation. The approval of spot Bitcoin exchange-traded funds (ETFs) in the US in January 2024 has led to $134 billion in inflows, while monthly trading volumes on platforms like Binance surpassed $1 trillion in March 2024, a significant increase from $11 billion in January 2018.

Public companies strategically accumulating Bitcoin, such as Strategy holding 576,230 BTC, have set a new industry standard. Companies like Metaplanet

Source: https://cointelegraph.com/news/bitcoin-bull-market-redefines-btc-s-role-in-modern-portfolios-fidelity?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound