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Multiple on-chain indicators and graphs are indicating signs that may suggest the onset of a new cryptocurrency bull market cycle, as per the co-founder of Delphi Digital.
On August 14, Kevin Kelly of the institutional crypto research firm Delphi Digital stated that cryptocurrency markets exhibit cyclical and predictable behavior, which “has significant implications for the crypto market moving forward.”
"The evidence is accumulating that we’re in the initial phases of a new cycle. Risk assets such as stocks [and] crypto have been sensing this all year long."
Kelly also presented a chart dated August 8 from Delphi Digital, emphasizing that Bitcoin adheres to four-year cycles with recognizable patterns that have consistently repeated over the last three cycles — with Bitcoin experiencing an 80% decline in the first year, returning to previous highs over two years, before surging to a new all-time high in the fourth year.
The crypto market is exceedingly cyclical.
Crypto market cycles are also remarkably stable.
However, their stability isn’t merely coincidental.
They’re foreseeable.
If we’re correct, this has significant implications for the crypto market ahead.
Let’s take a look at some charts…— Kevin Kelly (@Kevin_Kelly_II) August 14, 2023
Kelly remarked that Bitcoin cycle peaks usually align with the peaks in the Institute of Supply Management (ISM) manufacturing index — which monitors the health of the manufacturing and service sectors in the United States.
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“BTC price peaks tend to occur around the same period the ISM indicates signs of reaching its peak. Active addresses, total transaction volumes, and total fees – they all peaked in conjunction with tops in the ISM too.”
Kelly clarified that as the business cycle begins to show signs of recovery, so does the cryptocurrency market.
“Turning points in the business cycle have historically presented favorable opportunities to increase risk exposure,” he stated, adding, “It appears that the ISM is approaching the concluding stages of its two-year downtrend, which again risk assets have been sensing.”
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