Bitcoin's Current Cycle Is Outperforming According To These 3 Metrics, Says Analyst

Crypto analyst Benjamin Cowen, in his latest podcast, pointed out three important metrics to compare Bitcoin’s BTC/USD return on investment (ROI) across different market cycles.

What Happened: The three different ways to measure Bitcoin’s ROI are:

• From the 2022 low: Cowen highlighted that Bitcoin is currently up around 4.36x from its 2022 low. Comparatively, at the same point in the previous cycle, Bitcoin was only up 2.8x. "This cycle, it's actually off the lows more than the two cycles that came before it," he noted, indicating a stronger recovery this time around.
• From the 2021 peak: Bitcoin’s performance appears more modest than the 2021 peak. "Measured peak to peak, Bitcoin is about even," Cowen explained, reflecting on how Bitcoin’s current price is close to its all-time high of $69,000. He also discussed the notion that the April 2021 peak might have been more significant than the November 2021 peak, sparking a debate around true market tops.
• From the Halving: Cowen's least favorite metric, measuring from the halving, showed Bitcoin up about 7% since the last halving. He mentioned, "This is probably my least favorite way to measure the ROI because it's arbitrary," but acknowledged that historically, the post-halving year often sees significant price movement.

Also Read: Bitcoin, Ethereum, Solana Traders Need ‘Lower Time Frame Entries, Higher Time Frame Setups,’ Says Analyst

Why It Matters: Cowen's analysis underscores the importance of considering various market cycles and timeframes to gauge potential trends.

This can help develop a nuanced understanding of where Bitcoin stands in its current market cycle.

Cowen suggested that despite periods of market boredom, Bitcoin remains on a strong trajectory compared to previous cycles.

IntoTheBlock data shows transactions greater than $100,000 increasing from 5,089 transactions on June 2 to 8,887 on June 3. 98% of Bitcoin holders are in profit and 2% at breakeven. Daily active addresses increased by 24.5% from the prior day.

What’s Next: The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.

Read Next: What The Ethereum ETF Means For Altcoins And Meme Coins

This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Image created using artificial intelligence with Midjourney.