(CTN News) – It appears that Bitcoin and Ethereum are following the pattern of previous years, when their prices increased by 500% and 1,000%, respectively, according to Coinbase research.
According to the latest research report conducted by Coinbase Research and Glassnode, the current crypto market cycle of Bitcoin (BTC) and Ethereum (ETH) closely resembles that of the period between 2018 and 2022, a period during which both cryptocurrencies witnessed a significant surge in their prices.
There has been a note made that various indicators of cyclicality, such as net unrealized profit and loss and supply in profit, are in line with the previous trends in the past several years.
As such, analysts conclude that the current state of the crypto market does not reflect the euphoric conditions experienced during the maximum of 2023. This suggests that there is still room for growth in the market.
Although Coinbase Research acknowledges that the upcoming Bitcoin halving could have a positive impact on the market, it is cautious, noting that there is limited supporting evidence and characterizing the phenomenon as speculative.
According to current mining rates, the next Bitcoin halving is estimated to be held in April 2024 based on current mining rates. As a result, the block reward will be reduced from 6.25 bitcoins to 3.125 bitcoins.
According to analysts, Ethereum is going to undergo a major upgrade named Cancun in the near future.
This upgrade, which is expected to enhance scalability and security for Ethereum, is designed to make layer-2 transactions as cost-effective as possible, potentially leading to a substantial increase in the number of transactions occurring on the Ethereum network as a result of this upgrade.
Additionally, Coinbase has also made the point that both Bitcoin and Ethereum have experienced two cycles in the recent past, comprising both bull and bear markets, and the current cycle, which began in 2022, closely resembles the patterns observed in the cycles that preceded it in terms of price movements.