Bitcoin seeing ‘strong demand’ as crypto market eyes ‘recovery phase’

Analysis of previous bitcoin bull market corrections shows past year’s drawdown was much weaker than prior cycles — an indication of strong demand


Artomat/Shutterstock, modified by Blockworks


Trade activity for the world’s largest digital asset this year has, so far, remained fairly neutral to wider macroeconomic developments as market demand for bitcoin continues to prop up its price.

Assuming the November 2022 lows represent the bottom of the previous cycle, it’s possible to analyze the extent of the “bull market corrections” up to this point, Glassnode said Monday.

The steepest decline recorded for bitcoin (BTC) this year represents a mere -18%, which is low when compared to past cycles of bygone eras.

Data shows that, on average, bitcoin’s prior peak-to-troughs stood at roughly 48%, suggesting a “relatively strong degree of demand” for bitcoin currently exists, Glassnode said.

Bitcoin’s bull market correction drawdown history; Source: Glassnode

To further that point, the number of unique addresses holding 1 BTC surpassed the 1 million threshold for the first time on May 17 of this year — an indication of greater adoption.

Bitcoin’s hash rate, also another measure of adoption based on the network’s increase in security, rose to fresh heights on July 9, above 402 ExaHash per second (EH/s), data shows.

Mathias Beke, co-founder and CTO at market maker Kairon Labs, told Blockworks current sentiment and price action marked a “typical recovery phase.”

When asked if traders were looking to sell following excess market froth following Blackrock’s spot bitcoin ETF application, Beke said they were wary of potential declines and as such are not making significant moves in either direction.

“We think it’s a mix of big tech being fairly parabolic, but it looks like they might cool down a bit,” he said.

Still, uncertainty surrounding the US market and its approach to digital asset regulation has given traders pause, particularly as the asset’s four-year halving event swiftly approaches.

“At the moment there’s a lot up in the air around Binance, as well as the liquidations that could take place from FTX and Celsius,” Beke said.

Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.


Upcoming Events

Salt Lake City, UT

MON - TUES, OCT. 7 - 8, 2023

Blockworks and Bankless in collaboration with buidlbox are excited to announce the second installment of the Permissionless Hackathon – taking place October 7-8 in Salt Lake City, Utah. We’ve partnered with buidlbox to bring together the brightest minds in crypto for […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Research Report Cover Vertex.jpg


The proliferation of new perp DEXs has led to fragmented liquidity across various DEXs and chains. Vertex, known for its vertically-integrated DEX that includes spot, perpetual, and integrated money markets, is now tackling cross-chain liquidity fragmentation through horizontal integration with the launch of new Edge instances. Vertex's integrated offerings and cross-margined account structure amplify the benefits of new instances: native cross-chain spot trading, optimized cross-chain basis trading, consistent interest rates, reduced bridging friction, and more.


Partnering with EtherFi and Angle, the fully on-chain perp DEX features bespoke collateral



Gavin Wood introduced the next evolutionary step for the Polkadot network: the Join-Accumulate Machine, or JAM


The side events were the places to be at Consensus 2024, according to attendees


Also, who’s come out swinging in the spot ether ETF fee war — and who could undercut them


I know it is not in their nature, but US regulators could learn a lot by researching the digital asset frameworks that overseas regulators have already gotten right


Also, the ETF hype train can count out at least one member