Popular cryptocurrency analyst Benjamin Cowen suggests that Bitcoin’s bull cycle will continue, according to an on-chain metric.
Cowen examined BTC’s Actual Market Cap to Thermocap Ratio in a new YouTube video. The Realized Market Cap is the cost basis of Bitcoin multiplied by the supply, and Thermocap is the sum of daily Bitcoin miner revenue in US dollars. Cowen states that the rate has reached all-time highs in past BTC bull market cycles. According to the analyst, this has not yet happened in the current cycle.
“If you look at this metric, Bitcoin’s Actual Market Cap divided by Thermocap, this is what you get. One of the interesting things is that we haven’t seen a higher rise in this metric this market cycle, at least not yet. As you look at this, you know you have to wonder: Is there more? Frankly, we’ve been talking about extension cycles for a long time, but I think even if extension cycles start, it probably won’t be until the end of this year or 2023.”
Cowen states that Bitcoin is still “very, very fragile” in current market conditions and will stay that way until it can hold certain key milestones as support. Bitcoin was trading at $38,970 at the time of writing.
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