MSTR - Bitcoin Grinds Lower: Catalysts Traders Will Watch For Their Next Moves | Benzinga
Bitcoin (CRYPTO: BTC) has been on a downward trajectory recently, leaving many investors wondering what the future holds for the leading cryptocurrency.
According to Markus Thielen‘s analysis, the dynamics of Bitcoin trading have evolved significantly, necessitating a keen eye on specific events and developments.
Early Mining and Current Scarcity
Initially, Bitcoin offered substantial returns to early miners, with nearly 50% mined by 2012 and about 80% by 2017 when the prices were relatively low.
Now, with 93.8% of Bitcoin mined, new market entrants are finding higher entry barriers and diminishing cycle returns.
“Time in the market beats timing the market, but as Bitcoin matures, understanding and reacting to catalysts is vital for investment strategies,” Thielen notes.
Diminishing Returns and the Importance of Market Timing
From staggering 560x returns in 2013 to a modest 4-5x in the ongoing 2024 bull market, Bitcoin’s lucrative days of easy gains seem to be tapering off.
The frequency of days yielding over 10% returns has ...