Despite an unprecedented global pandemic that has wreaked havoc on major economies of the world, the cryptocurrency markets have been heating up in recent months.
According to widely-followed analyst Willy Woo, bitcoin is currently mirroring its performance in the fourth quarter of 2016 just before it raced to its current all-time high of $20,000. Woo explained that a new bull market for crypto is already underway.
It’s Q4 2016 All Over Again
After the last bull market in 2017, crypto enthusiasts and experts alike have been calling for another bull market for the longest time. According to Willy Woo, the second bull market actually started in April 2019. Woo made this comment while responding to a tweet by bitcoin developer and educator Jimmy Song, who recently wrote a detailed article discussing when a new bull market starts.
Bitcoin has been quite bullish over the past couple of weeks. The flagship cryptocurrency has tested the $12,000 level twice already in the past couple of days. Although it has been unable to keep its head above that level, fundamental and technical factors suggest underlying strength.
For Woo, the uptrend witnessed recently is the “early main bull phase” — just like in Q4 2016 before the last bull market. Woo, however, pointed out that the dynamics at play are quite different this time.
…But This Time Its A Little Bit Different
Secondly, Woo posits that Ethereum has transformed itself into a platform for DeFi instead of Initial Coin Offerings (ICOs). This, per the on-chain analyst, is “an interesting gain for crypto as a whole”.
Generally, Woo believes bitcoin will be adopted greatly by traditional investors in this cycle, and then it will beat gold to become the No.1 store of value during the next cycle.
“I think this cycle BTC gets to prove itself as a legit macro asset bucket for traditional investors, while the cycle after this it overtakes gold to be the significant digital SoV for a digital age. Expecting sovereign wealth funds to deploy this cycle and next.”
Bitcoin Is About To Blast Off
Woo’s analysis bears some similarities to comments made by the co-founder of Morgan Creek Digital, Jason.A.Williams. In a tweet a few hours ago, Williams claimed that the benchmark cryptocurrency has begun a launch sequence. As such, he thinks the crypto could blast off any moment from now.
Notably, Wiliams is far from being the only bull in the room. A recent Twitter survey conducted by quant analyst PlanB (the creator of the BTC stock-to-flow model) indicated that 51% of the investors believe bitcoin will be valued at over $100,000 before December 2021.