The Pomp Letter: Bitcoin’s Network Poised For the Bull Market
Since bitcoin’s halving in the spring, the cryptocurrency has traded in a sideways range. Despite some attempts to move higher, it’s yet to near its all-time highs from the spring. However, the fourth quarter of a halving year tends to be a period of strong performance.
What’s more, prices are starting to perk up on a technical level. The past few weeks has seen some moves higher, then met with healthy pullbacks.
What could push prices higher? Halving years reduce new supply to the market. With over 90% of all bitcoin already mined, there isn’t much supply left.
Meanwhile, bitcoin wallets have held steady. Existing owners aren’t ready to sell in the mid-$60,000 range. Data suggests that about 65% of all bitcoin hasn’t moved in 12 months, near the high of 70% set in December 2023.
Over the past two years, half of all bitcoin in circulation hasn’t moved. Prices are clearly trending higher at a time when supply is tight and existing owners aren’t ready to sell.
Even with the sideways performance over the past few months, bitcoin is still up around 50% this year. With bitcoin setting up for a further run higher, it should continue to outperform. And that outperformance should last well into 2025.
And once bitcoin starts to take off again, other cryptocurrencies should rise with it.