A new report suggests that the crypto bear market is waning, with the Bitcoin (BTC) bottom already here.
According to crypto fund firm Adamant Capital, the market has entered a period of accumulation as bitcoin whales amass the crypto.
The firm released its analysis on April 18 stating that the phase will see BTC trade within the range of $3,000 and $6,500 before it embarks on its next bull run. As per the researchers, this period that sees bitcoin whales accumulating the crypto mirrors the cryptocurrency’s 2014-2015 bear market.
The firm’s analysis contends that the majority of retail traders have cashed in during recent rallies and thus exited the market. The exiting of so-called “weak hands” leaves “strong hands”- agnostic traders and other value investors- in control.
Adamant Capital’s analysis correlates to historical analyses of bitcoin volatility lows, with the latest indicators pointing to a 5 percent slump in the coin’s 60-day volatility. Incidentally, this is the lowest level since the fourth quarter of 2016.
The analysts add that once the weak hands take profits and exit, they create resistance. This, in turn, sees those left in the market seek to “buy at the bottom of the range,” eventually creating a floor.
Elsewhere, the report identifies the millennial generation as being critical to the crypto market growth. Up to 92 percent of Millenials state that they do not trust mainstream banks, with many of them going on to buy and hold bitcoin.
While bitcoin’s price has slumped over 75 percent since its highs in late 2017, the report suggests the pioneer crypto is set for massive global adoption in the next five years.
That would aid bitcoin’s growth and contribute to potential price gain as well as grounding it as a major portfolio hedge and reserve asset.
Again, millennials are and will continue to play a key role in this mass adoption. A recent report by Clovr, a startup focused on crypto, stated that this asset is the most popular investment vehicle among high-earning millennials.
According to the report, as twice as many millennials compared to other generation groups, are likely to invest cryptocurrencies. In terms of gender, about 43percent fancy crypto as an investment tool, compared to about 23 percent women.
A poll by U.S.-based crypto finance firm Circle found that a quarter of millennials would go on to buy digital currencies in 2019, a proportion that is 10 percent higher than any other of the other generations.
Disclaimer: This is not investment advice. Cryptocurrencies are highly volatile assets and are very risky investments. Do your research and consult an investment professional before investing. Never invest more than you can afford to lose. Never borrow money to invest in cryptocurrencies.