Bitcoin Super Cycle? On-chain data is bullish

Bitcoin adoption is advancing, as evidenced by on-chain data. Bitcoin dominance, on the other hand, continues to decline. How does that fit together? Welcome to the opinion ECHO.

Is Ether (ETH) flipping Bitcoin (BTC)? It looks like this regularly during the old season of the bull market. In the past Bull Market, ETH top dog BTC also came close one or the other time. But so far it has not been enough for a “flippening”, ie the replacement of the top position of the crypto currencies.

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According to investor Kevin O’Leary, it will stay that way for the time being. Across from CNBC said O’Leary: “[Ethereum] will always be number two. Bitcoin will remain gold and Ethereum will remain silver. “

Nevertheless, the market dominance, i.e. the ratio of the Bitcoin market capitalization to the total crypto market capitalization, is in free fall. At 49 percent, the dominance is at a level last seen in July 2018. It is questionable whether this trend will expand. If you look at the Flippening Chart, for example, you can see that ETH was significantly closer to displacing BTC in 2017 than this year. So maximalists can breathe easy.

Flippening Chart. Source: https://www.flippening.watch/

Liquidity crisis intensifies

There is also news from the so-called Bitcoin liquidity crisis. Like the anonymous Twitter account @BTC_Archive writes, there are currently only about 2.5 million BTC on the addresses of the exchanges. This means that Hodler hold 88 percent of the amount of Bitcoin in circulation in their hands. If you compare the current situation with that of the last bull market, the scope of this chart becomes clear. Because an opposing tendency of price growth and exchange credit was not observable in 2017. In other words, the bull market hasn’t even started properly.

Percentage of BTC on Exchanges is continuously decreasing. Source: Glassnode.

Is that the Bitcoin Super Cycle?

The Bitcoin Super Cycle thesis persists. Briefly summarized, proponents of this thesis see a march through the cryptocurrency to hyperbitcoinization. In contrast to the previous cycles that shaped the course of the course, BTC will therefore not undergo an 80 percent course correction.

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This thesis is also supported by the YouTube community. So argues Youtuber EllioTrades Cryptothat the bull run hasn’t even started properly. If the trend (of falling Bitcoin supply on the exchanges) continues, the current bull market could be three times longer than the previous one. Then we have a Bitcoin Super Cycle.

Business journalist Alex Saunders tends to do the same. At a certain point, exponential technologies such as the Internet or the telephone only know one direction, namely northwards.

According to a graphic from “The world in data”, crypto adoption is still in its infancy these days. Contrary to what some might think, the train has not left for a long time. On the contrary: it isn’t even in the train station.

These two sets of data make me super bullish on a possible super cycle. Either it comes in this cycle or shortly after,

says Youtuber EllioTrades Crypto.

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