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In recent news, Kevin Kelly, one of the founders of Delphi Digital, has sparked speculation about the possibility of a new bull market in the digital currency market. Kelly cites a key indicator of the US manufacturing business as evidence for this upcoming bullish cycle.
According to Kelly, there are several indicators and charts that point towards the beginning of a new cycle in the digital currency market. He believes that these cyclical patterns have significant implications for the future of the market.
One of the key indicators Kelly references is a chart from Delphi Digital that shows Bitcoin’s four-year cycles. He notes that these cycles have distinct patterns, with an 80% drop in the first year followed by a recovery to previous highs in the second year. The third year sees a new record high before reaching a peak in the fourth year.
Interestingly, Kelly points out that these peaks in Bitcoin’s cycle tend to coincide with peaks in the Institute for Supply Management (ISM) manufacturing index. This index tracks the health of the manufacturing and service sectors in the United States. When the ISM shows signs of a price rally, Bitcoin’s price also tends to peak. This suggests a connection between the improvement of the business cycle and the crypto market.
Delphi Digital: A new bull market is coming
Kelly further explains that historically, turning points in the business cycle have presented opportunities to increase risk exposure. As the business cycle improves, so does the crypto market. This could mean that the recent sluggishness in the Bitcoin and crypto markets could soon give way to a new wave of growth.
Analysts have also noted several fundamental factors that could contribute to the revival of the digital currency market. These factors include the approval of ETFs, the end of rate hikes, and Ethereum’s upcoming scale upgrade. These developments could bring the market out of its hibernation and into a new bullish cycle.
Overall, the evidence provided by Kevin Kelly and Delphi Digital suggests that a new bull market could be on the horizon for the digital currency market. The cyclical patterns observed in Bitcoin’s price and the correlation with the ISM manufacturing index indicate a potential upswing in the market. Additionally, the presence of fundamental factors that could drive growth further support this notion. It remains to be seen how these predictions will play out, but investors and enthusiasts will be eagerly watching for signs of a new bull market.
