Despite sluggish performance in oil, gold, and the S&P 500, Bitcoin has achieved a historic milestone by surpassing $100,000. On December 6, Bitcoin (BTC) broke through the $100,000 barrier for the first time, marking a long-awaited milestone in cryptocurrency history.
Over the past month, Bitcoin's price surged by 32%, while oil dropped 6.3%, the S&P 500 fell 1%, and gold declined by 1%. This stark contrast highlights Bitcoin's resilience and growing dominance as a global asset class.
Bitcoin Enters the "Euphoria Phase" with Rally Projected Through 2025
Analysts indicate that Bitcoin has entered what traders colloquially call the "euphoria phase," a period characterized by heightened investor excitement and sustained price increases. According to the Net Unrealized Profit/Loss (NUPL) metric for long-term holders, this phase could extend Bitcoin's bull run until late 2025.
Quinten François, Co-founder of WeRate, noted in a December 7 post:
"Bitcoin is entering the euphoria phase. We could be up to 12 months away from the cycle top."
The NUPL metric measures whether the Bitcoin network is in a state of profit or loss based on unrealized gains and losses among holders. This indicator suggests that the current momentum may persist, though with potential volatility.
Key Factors Supporting Bitcoin's Continued Growth
- Global Liquidity Trends: Despite declining global liquidity, Bitcoin has reached new all-time highs—a sign of strong underlying demand.
- Market Correlation: Bitcoin's decoupling from traditional assets like gold and stocks underscores its unique value proposition.
- Expert Projections: Analysts like Raoul Pal, CEO of Global Macro Investor, predict a "local top" above $110,000 by January 2025, based on Bitcoin's correlation with liquidity indices.
James Coutts, Chief Crypto Analyst at Real Vision, added:
"Bitcoin hitting new highs amid worsening liquidity is remarkable. If conditions improve after this phase, we could see a brief correction before another upward trajectory."
FAQs: Understanding Bitcoin's Current Bull Run
Q: How long is the euphoria phase expected to last?
A: Historically, this phase can extend for 12–18 months, potentially lasting until late 2025.
Q: What makes Bitcoin resilient despite global liquidity challenges?
A: Bitcoin's decentralized nature and fixed supply make it less susceptible to traditional market fluctuations, attracting investors during economic uncertainty.
Q: Should investors expect a price correction soon?
A: While short-term corrections are possible, the overall trend remains bullish, supported by strong holder sentiment and institutional interest.
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