Bitcoin and Ethereum Echo Primary Bull Market Patterns 500%-1,000% Increases

Bitcoin (BTC) and Ethereum (ETH) are currently following the same pattern as last year, during which their prices increased by 500% and 1,000%, according to the latest research report by Coinbase Research and Glassnode.

The observation draws parallels between the current crypto market cycle and the period from 2018 to 2022, which will see significant price increases in both cryptocurrencies.

The Impact of the Bitcoin Halve on Crypto Markets

Analysts highlight various cyclical metrics such as net unrealized profit/loss and dividend yield that reflect past trends. These metrics indicate that crypto markets do not reflect the 2023 peak. This suggests that there may still be room for the market to witness further gains.

While acknowledging the potential positive impact of the upcoming Bitcoin halving, Coinbase Research is cautious.

The paper cited a lack of strong supporting evidence and described the relationship between halving and market performance as somewhat speculative.

According to the study, in only three half-events in history, the absence of a fully established pattern, especially the effects of previous events such as global liquidity parameters, was observed.

The upcoming Bitcoin halving, expected to happen in April 2024 based on current mining rates, will reduce the block reward from 6.25 to 3.125 BTC.

Ethereum market analysis and upcoming updates

In the year By 2023, the price of Ethereum (ETH) has increased by more than 90% due to several factors, such as the success of the Chapela update and the increasing availability of spot crypto ETFs. Market participants were encouraged by these developments, which contributed to the increase in ETH value.

Looking ahead, analysts are focusing on the evolution of Ethereum, which has been named Cancún. It is expected to improve scalability and security to make Layer-2 transactions as cost-effective as possible.

The successful implementation of Kanku can lead to a significant increase in the number of transactions carried out on the Ethereum network.

Coinbase analysis reveals that Bitcoin and Ethereum have gone through two cycles that include both bull and bear markets. In the year The ongoing cycle that began in 2022 closely mirrors the patterns observed in previous ones.