Coinbase Draws Parallels Between Bitcoin and Ethereum’s Current Cycles and the Period 2018-2022
According to a recent research report conducted by Coinbase Research and Glassnode, Bitcoin and Ethereum are currently following a similar pattern to previous years, where their prices experienced significant surges of 500% and 1,000% respectively. The report indicates that the current state of the crypto markets does not reflect the same level of excitement seen in 2023, suggesting that there is still potential for further growth.
While Coinbase Research acknowledges the potential positive impact of the upcoming Bitcoin halving, they remain cautious, as there is limited supporting evidence and the relationship between the halving and price performance is somewhat speculative. The next Bitcoin halving is expected to occur in April 2024, with the block reward decreasing from 6.25 to 3.125 BTC.
In terms of Ethereum, analysts are focusing on the anticipated upgrade called Cancun, which aims to improve scalability and security. The upgrade is expected to make layer-2 transactions more cost-effective, potentially leading to a significant increase in the number of transactions processed on the Ethereum network.
Coinbase also highlights that both Bitcoin and Ethereum have gone through two cycles, including both bull and bear markets. The current cycle, which began in 2022, closely resembles the patterns observed in the previous cycles.
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