"Bitcoin’s Bull Market Redefines Its Role in Modern Portfolios"

Bitcoin’s Presence in Modern Portfolios will Evolve in the Bull Market

A recent report from Fidelity Digital Assets has shed light on the evolving role of Bitcoin in modern portfolios as the cryptocurrency market experiences a bull run. The report highlights how Bitcoin's performance in the current bull market and the influx of new buyers reflect a maturing market and widening adoption.

One key indicator of investor confidence in Bitcoin is the 50% increase in hashrate and a 63% jump in Realized Cap. The surge in hashrate demonstrates strong miner commitment despite reduced rewards, signaling stability in the market.

The Current Bitcoin Market Cycle

At block height 892,500, marking 25% progress into the current halving epoch, Bitcoin traded between $82,500 and $85,000. This marked a 31% increase from its value on April 19, 2024, when the fourth halving reduced block rewards to 3.125 BTC.

Fidelity's senior research analyst Daniel Gray noted Bitcoin's network resilience, emphasizing the steady and measured growth in the 2024-2025 market cycle. Unlike previous cycles with post-halving rallies, the current cycle has seen a more stable growth trajectory.

The Puell Multiple, an indicator of miner revenue relative to Bitcoin's price, has stabilized, indicating that the market is adjusting to lower issuance without significant volatility. This phase historically precedes new all-time highs, which have recently been achieved. Fidelity suggests that this growth trend could continue into the second quarter of 2025, potentially redefining Bitcoin's role in modern portfolios as a credible asset class.

Bitcoin's Realized Cap and Market Evolution

Bitcoin's Realized Cap, a metric that measures cumulative net capital inflows, has surged 63% since the 2024 halving. This increase highlights the significant amount of capital entering the market and underscores Bitcoin's long-term growth trajectory as a maturing asset.

This trend aligns with previous halving cycles, where Realized Cap has shown consistent growth, indicating the continued maturity and growth potential of Bitcoin as an asset class.

Key Drivers Behind the Bitcoin Bull Market

The current bull market cycle is characterized by record levels of institutional investor and corporate-level participation. The approval of spot Bitcoin exchange-traded funds (ETFs) in the US in January 2024 has sparked $134 billion in inflows, while monthly trading volumes on platforms like Binance have surpassed $1 trillion in March 2024, a substantial increase from previous years.

Public companies, such as Strategy, have strategically accumulated Bitcoin, setting a new trend in corporate treasury assets. Other companies, including Metaplanet Inc., Bitcoin Group SE, and Semler Scientific, have followed suit, solidifying Bitcoin's role as a corporate investment asset this cycle.

Gray asserts that Bitcoin's fundamentals and global recognition are stronger than ever, indicating a cycle of growth, institutional anchoring, and market resilience.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.