Haedal unlocks liquidity for staked SUI by converting it into haSUI tokens, enabling users to earn rewards while freely participating in DeFi activities.

vWhat if you could earn staking rewards and keep your crypto liquid? Haedal, a pioneering 

 blockchain, turns this possibility into reality. Haedal eliminates the trade-off between 

 and accessing liquidity by transforming staked SUI tokens into haSUI — a yield-bearing asset usable across 

 (DeFi). This article explores how Haedal simplifies staking, enhances capital efficiency and unlocks superior returns while fueling the growth of the Sui ecosystem.

Haedal is a liquid staking protocol on the Sui blockchain that allows users to stake SUI tokens, mint haSUI (a yield-bearing 

) and earn additional rewards through DeFi integrations. It simplifies participation in staking while maintaining liquidity for decentralized finance activities.

Haedal was created by a group of anonymous blockchain enthusiasts and experts who recognized the need for a more efficient and secure way to stake SUI tokens on the Sui blockchain. Their vision for Haedal was born from the desire to improve the DeFi ecosystem by offering a simple, one-click liquid staking solution. This approach allows users to earn rewards while still keeping their assets flexible and liquid.

Haedal bridges the gap between staking and decentralized finance, making it easier for users to participate in various DeFi activities without sacrificing security or efficiency. By doing so, Haedal boosts user engagement within the Sui ecosystem and also helps strengthen and expand the broader DeFi ecosystem, paving the way for greater blockchain adoption.

Haedal seeks to address the major issue of lack of liquidity in traditional staking models, whereby users must lock their assets for fixed periods. This restricts their ability to use those funds for other investments or DeFi activities, such as 

 or governance participation, reducing flexibility and deterring engagement. 

Another barrier is the complexity of staking management. Selecting validators, monitoring performance and handling technical processes can overwhelm newcomers — and even experienced users. This steep learning curve limits broader adoption and discourages participation in ecosystem growth. 

Also, many staking systems suffer from inefficiency and security risks. Outdated practices or centralized control can expose users to asset loss and/or downtime, while fragmented platforms make participation cumbersome. These vulnerabilities erode trust and hinder the scalability of decentralized networks. 

 technology to tackle liquidity constraints, simplify user experience and enhance security, aiming to create a more accessible and efficient ecosystem for staking and DeFi integration.

Haedal deploys the following advanced mechanisms to make staking SUI tokens more flexible and user-friendly. 

haSUI is a versatile token that unlocks liquidity for users who stake their SUI tokens through Haedal. When users stake SUI, they receive haSUI at a 1:1 ratio, acting as a dynamic “receipt” for their staked assets. Unlike 

, in which funds are locked and unusable, haSUI retains liquidity, allowing users to trade, lend or use it as collateral in DeFi apps while their original SUI continues earning staking rewards. 

Over time, haSUI’s value grows as it accumulates rewards from validators securing the Sui blockchain. This dual functionality bridges the gap between passive income and active participation in DeFi, letting users maximize their crypto holdings without compromise. 

Haedal streamlines staking by automating the entire process. Users deposit SUI tokens into the protocol, which then delegates them to trusted, high-performing validators on the Sui network. This eliminates the need for users to research validators or manage technical details manually. The system continuously monitors validator performance, reallocating stakes to optimize returns and minimize risks. 

Unlike more rigid staking models, Haedal’s protocol imposes no lockup periods, so users can unstake at any time by swapping their haSUI back to SUI. This flexibility, combined with automated efficiency, makes staking accessible to everyone, from newcomers to institutions, while ensuring their contributions actively support Sui’s network security. 

The Random Vault adds an element of chance to traditional staking, creating a fun and community-driven experience. Users deposit SUI into the vault for one week, during which their funds are delegated to validators. At the end of the week, all staking rewards generated by the vault are pooled and distributed to five randomly selected participants. This gamified approach injects some excitement while also diversifying risk by spreading stakes across multiple validators automatically. 

Participants enjoy a hands-off experience, requiring no active management, while gaining exposure to potential bonus rewards. The Random Vault democratizes staking, offering both seasoned users and casual participants a fresh way to engage with the Haedal ecosystem. 

The Haedal Market Maker (HMM) ensures seamless trading and liquidity for haSUI tokens, addressing common challenges in DeFi: price volatility and accessibility. HMM operates by providing deep liquidity pools for haSUI trading pairs, which stabilizes prices and minimizes slippage during trades. This means users can buy or sell haSUI quickly and at fair market rates, even during periods of high demand. 

HMM maintains a tight peg between haSUI and SUI and enforces trust and usability, making the token practical for everyday DeFi activities, such as swapping, lending and/or collateralizing loans. This infrastructure not only benefits individual users, but also strengthens the broader Sui ecosystem, encouraging adoption and enabling institutions to participate confidently in the decentralized finance realm. 

Haedal has achieved significant milestones, including launching its liquid staking protocol, growing its 

Looking ahead, the project aims to expand its product offerings, improve scalability and strengthen its role in the Sui ecosystem. 

Haedal redefines staking on Sui by merging liquidity, simplicity and innovation. By transforming staked SUI into yield-bearing haSUI tokens, it unlocks DeFi opportunities without sacrificing rewards or security. Features such as automated staking, gamified vaults and robust liquidity solutions empower users to maximize earnings while supporting network growth. 

With a clear road map and a community-driven ethos, Haedal is positioning itself as a catalyst for accessible, efficient decentralized finance, bridging traditional asset holding with the dynamic potential of blockchain.

Intermediate

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Haedal: Unlock Superior Returns With Sui Liquid Staking

Loopy is a Sui-based meme coin inspired by a beaver with a distinctive pink hue that’s featured in the Pororo the Little Penguin cartoon. Learn more here.

If you want a comprehensive crypto portfolio, it pays to check out 

. Though these coins might not be worth as much as major cryptos, their potentially drastic price swings can result in big profits for investors. One intriguing 

 meme coin to check out is Loopy, a cartoon-themed coin (inspired by a popular television show) that’s had an interesting growth pattern of late. To see if Loopy is the right investment for you, we’ll take a look at its tokenomics and pricing trends. 

 is a meme coin based on the Sui blockchain. It's inspired by a beaver with a distinctive pink hue that’s featured in the 

 cartoon. Much like the character herself, the Loopy coin hopes to showcase the values of friendship, hope and harmony.

On a technological level, Loopy works similarly to other meme coins. Loopy uses the Sui blockchain as the foundation for its system. This delegated 

 network is known for its scalability and speed. Loopy takes advantage of Sui's features by using its standardized 

 and token creation protocols. Since Loopy doesn't have to run its own blockchain, it can focus more on the marketing side of operating a cryptocurrency.

In order to increase its token's market capitalization, Loopy has heavily integrated itself into social media. Loopy runs both a Telegram channel and a 

 where it interacts with its audience. These sites post memes about gentlehearted Loopy, encouraging users to share their own. 

In addition to marketing the Loopy coin, these social media sites also help to operate the entire Loopy community by tracking member participation and using these metrics to determine eligibility for 

Loopy's token, with the symbol LOOPY on most exchanges, is a traditional meme coin that has no utility outside of entertainment. Its sole purpose is to appeal to fans of gentlehearted Loopy in 

 The Loopy coin does have a somewhat higher supply than many other tokens, with a 

. Half of the tokens were distributed to community members in an 

, while the other half were used for token liquidity. The majority of these tokens are circulating now, so the coin's current circulating supply is close to its total supply of 1 trillion tokens.

Loopy was released back in October 2024, so it's already been the subject of a few newsworthy events. The coin was initially selling for around $0.000012, but a decline in trading volume led to a sudden price drop, to around $0.0000035 in early November 2024. Fortunately, fans of the beaver with the distinctive pink hue rallied behind it, and it surged to an impressive all-time high (ATH) of $0.000013 by mid-November. 

When the Loopy token’s price increased by over 763% in just 24 hours, it began receiving a lot of attention. The coin's market cap reached $17 million, and it was briefly one of the top Sui meme coins. Since its heyday, the Loopy token has had some struggles. Starting in January 2025, coin prices dropped to as low as $0.00000004 as its market cap plummeted. 

However, these unusually low prices have been just as noteworthy as the coin's ATH. Loopy fans who were getting priced out of owning the token have been expressing interest in it once again, due to its more affordable prices. The trading volume of Loopy might look a little low now, but it's no longer in free fall, as it was in early January 2025. Some market analysts even suggest that LOOPY’s price may reach 

LOOPY tokens have a high current circulating supply, but not all exchanges support this token yet. It's primarily available through smaller, decentralized exchanges. However, if you prefer a more convenient experience, check out the 

. This service provides access to DEX offerings, while maintaining the same great service that all Bybit users can count on. Purchasing LOOPY through Bybit is as simple as checking the current price, entering the number of LOOPY you want to buy and confirming your purchase. 

LOOPY's market cap and 24-hour trading volume have certainly declined from the coin’s heyday, but it still holds some promise for investors. The low current price means that it's possible to buy a lot of LOOPY without spending much money. This can result in big profits if the coin experiences even minor price increases. Furthermore, most pricing analyses suggest that LOOPY's market cap could recover in the future.

However, don't forget that this sort of investment can be risky. Some meme coins generally fail to return to their ATHs after brief enthusiasm during their launches. Loopy's team hasn't been promoting their coin as much lately, so whether or not LOOPY can recover will rely mostly on the coin's fanbase. While investing a bit of extra money you have in LOOPY could be fun, it’s not recommended that you invest money you can’t afford to lose. Meme coins are always volatile, and it’s essential to use some caution and 

 any time you invest in tokens such as LOOPY.

While LOOPY tokens might not have the highest 24-hour trading volume anymore, this meme coin is still backed by a dedicated community. Its ability to appeal to 

fans with positivity and humor has helped it stand out from other Sui meme coins. Loopy is a great example of how a simple yet fun concept can end up appealing to thousands of investors.

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Loopy (LOOPY): The Most Adorable Meme Coin on Sui

AI agents are rapidly becoming integral to the web3 landscape, enhancing user interactions and optimizing decentralized applications (DApps).

Web3 represents a transformative digital ecosystem shift characterized by decentralized networks and enhanced transaction efficiencies. As competition intensifies within this landscape, industry players increasingly seek to harness emerging technologies to gain advantages. A significant trend is the rise of artificial intelligence (AI) agents — intelligent systems capable of performing tasks autonomously and making decisions based on their analyses.

AI agents are seen as transformative tools in web3, enabling users to navigate complexities and enhancing interactions within DApps. With their numerous capabilities, these agents aim to improve community engagement and streamline user experiences, ultimately reshaping the functionalities of web3.

The Functionality and Applications of AI Agents

AI agents operate through steps that include goal definition, data gathering, analysis, decision-making, monitoring and continual learning. They utilize large language models (LLMs) to process vast amounts of data and adapt to dynamic environments effectively. Unlike traditional programs, AI agents can self-learn and adjust their actions based on real-time conditions, making them suitable for complex tasks in the web3 environment.

: AI agents, such as those on platforms like Discord and X (Twitter), facilitate communication and interaction among community members, fostering discussions and connections.

: By aggregating data from various sources, AI agents can track market conditions and emerging trends in order to provide valuable insights to users.

 (DeFi): AI agents in DeFi (termed “DeFAI”) are gaining traction for their ability to analyze data, assist in investment management and automate trading processes, enhancing user experience and decision-making.

: From managing portfolios to executing trades, AI agents are increasingly being used for general task automation, allowing users to optimize their interactions with decentralized platforms.

The following prominent projects are at the forefront of the AI agent landscape.

While the potential of AI agents in web3 is significant, there are several risks that must be addressed.

As advancements in AI technology continue, the risks associated with AI agents may evolve into opportunities for growth. Projects such as 

 are exploring new economic models that prioritize sustainable applications. Overall, AI agents hold the potential to redefine user experiences in web3 and pave the way for innovative applications and services.

Advanced

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AI Agent Industry Report: Its Rise in Web3 Amidst AI Hype

Learn all about earning interest on crypto, and the various ways you can earn crypto interest on Bybit for high yields!

Part 1: The Basics of Earning Crypto Interest

Cryptocurrency markets are well-known for their inherent volatility. While this poses nontrivial risks, it also opens up unique opportunities to earn yields and returns that the traditional stock market investor may not even dream of.

These substantial yield opportunities have grown larger and more accessible with the development of the 

 (DeFi) industry. The real game changer has come about with the boom of crypto 

(DEXs), both striving to give customers a diversity of financial products.

In this article, we’ll show you how to earn interest on crypto and, more importantly, how to choose investment opportunities that will optimize your yields.

Jargon to Know to Help You Earn Interest on Crypto

Before diving into the best opportunities to earn interest on crypto, let’s cover some of the most important terms used in the crypto finance industry.

 (APY) is yearly interest that accrues to your investment, taking into account the effect of compounding.

 is the measure of a crypto’s market value, which is derived by multiplying its current market price by its circulating supply.

 (TVL) refers to the total market value of all the crypto funds currently locked in a DeFi platform’s 

 refers to a substantial and usually prolonged market decline. Bear markets are characterized by the dominance of selling rather than buying among market players.

 is a decentralized digital network that stores transactions in chains of blocks. Transactional activity on a blockchain is controlled collectively by all of the network’s participants/users. Most of the activity on a blockchain network — exchange of funds between users, confirmation of transactions, and business operations — involves the use of crypto coins.

 (PoS) is a consensus mechanism used on some blockchain networks for validating block transactions. In PoS blockchains, network users lock a certain amount of their crypto assets on the platform for the right to validate transactions and receive staking rewards.

 refers to locking crypto funds, both on centralized and decentralized platforms, in order to generate income.

 is a process whereby you deposit your crypto assets in a DEX’s 

in order to receive rewards in tokens and fees.

 occurs when the price of a deposited asset in a liquidity pool decreases from the time when you deposited it.

The primary methods through which you can earn interest on crypto are staking and lending. Staking involves locking your funds on a blockchain to help validate transactions, in return for which you earn crypto rewards from the platform. Additionally, some centralized platforms — such as CEXs and 

Staking, however, has moved beyond its original intent and now often refers to a plethora of investment products on CEXs and DEXs, in which funds aren’t specifically used for blockchain validation.

 refers to depositing your funds to lending pools (and sometimes to other types of pools as well) with DeFi lending and borrowing protocols, as well as with centralized crypto lending platforms.

When considering lending and staking crypto, of key interest to investors are the security and investment risks involved.

Staking is often viewed as a safer option than lending. After all, staking is a fundamental process on a blockchain network, and is thus well-protected by the overall blockchain security model. If staking fails on a blockchain, the entire blockchain fails, along with all of its 

 (DApps). Due to this critical importance of staking, its safety is secured against all but the most severe hacks.

DeFi lending also takes place on DApps residing on top of the underlying blockchain, which introduces an additional layer of vulnerability. Furthermore, DeFi lending presents some very specific security risks, such as 

Therefore, staking generally poses comparatively fewer security threats to your funds as compared to lending. 

The risk-vs.-return between staking and lending, however, may not be as clear-cut. In general, established lending protocols such as 

 offer lower interest rates for large-cap, popular cryptocurrencies, as compared to standard staking interest rates. However, some smaller lending platforms might offer extremely high-interest rates, usually for highly volatile, small-cap coins.

As with everything in the world of finance, the higher the rate offered, the more risk the investment carries. The downside risks of investing in very new, “dark horse” cryptos available on some lending platforms might be extremely high. Furthermore, when you use DeFi lending protocols, you’ll also face the potential for impermanent loss, due to the volatility of crypto assets. Nevertheless, protocols usually assist with mitigating the losses by distributing a portion of the trading fees to liquidity providers.

Another important factor in the staking vs. lending comparison is collateralization. On lending and borrowing platforms, borrowers are first required to lend funds to the protocol as collateral for their borrowed amounts. Staking, on the other hand, involves no collateral.

Staking on Exchanges vs. Staking on Blockchains

If you decide to stake your crypto funds, your two main options will be via CEXs, and/or participation on a blockchain platform, which can be done directly by running a validator node or by joining a staking pool.

Running a blockchain validator node lets you earn staking rewards directly. However, the technical setup and minimum investment requirements are often significant. For example, to run a validator node 

 you’ll need to download the entire blockchain, be online at all times to avoid “slashing” penalties and run all the requisite software.

Financial requirements for validator nodes are also far from trivial. 

For instance, Ethereum validators must stake at least 32 ETH (around $89,787 as of Feb 4, 2025).

As an alternative to direct staking, you may join a staking pool such as 

 for ETH staking. These staking pool solutions allow users to stake with significantly lower technical and financial commitments. Many ETH staking pools also offer stakers a 

 that represents the staked ETH and its associated rewards, which can be used for various DeFi purposes. However, unlike direct blockchain staking, participating in a staking pool makes you dependent on that pool’s operator.

Instead of staking on a blockchain, whether individually or via a pool, you might consider staking via a CEX. For many crypto investors and users, the CEX route is more affordable, less risky and less technically complicated.

This is largely due to two key factors — the security of your funds, and customer support. Major CEXs are the largest crypto trading platforms in the industry. Their security setups and customer support provide key advantages over blockchains and DApps.

Any potential hacker attacks on a blockchain could lead to potential loss of funds. At the same time, you may use a custodial wallet on a major CEX so that your funds are at lower risk of being hacked. Naturally, CEXs aren’t immune to hacker attacks. However, the larger ones feature cybersecurity as a critical part of their business model. Following the insolvency of one of the world’s leading exchanges, 

, many major CEXs such as Bybit also include 

 (PoR) to make their holdings entirely transparent to the public. Thus, custodial wallets on these CEXs are relatively more secure as compared to noncustodial blockchain wallets.

Staking on a CEX may also help you access investment products with more stable and predictable rates and terms. For novice investors, it could also be a less complicated way to enter the world of crypto staking.

Additionally, staking on CEXs allows you to use coins that are normally not “stakeable” via a blockchain platform. Blockchain staking only works with cryptocurrencies based on PoS networks. For instance, the world’s largest crypto, 

 (BTC), isn’t based on a PoS network, so it can’t be staked on a blockchain.

Best Crypto Staking Coins for Highest Interest

The volatility of the crypto market means that there’s dynamic change when it comes to the best coins for earning interest. Regardless, the best interest rates in the staking game are normally available via CEX staking. Since CEXs offer a wide array of coins and products, there are often great deals available.

CEXs also offer staking for popular stablecoins — such as USDT, USDC, DAI and more — that can’t normally be staked on a blockchain. In addition, some of these coins have great rates on offer. 

For example, Bybit’s current interest rate for USDT staking is 555%, one of the highest rates in general for staking.

The table below shows the top five coins available for staking on Bybit.

Coins are listed in descending order by interest rates. Interest rate and market cap data are valid as of  Feb 4, 2025. (Data source — Bybit.com; Market cap data source — Coingecko.com)

Given the volatility of the crypto industry, the key to earning the best crypto interest rates is to keep an eye on the market and source the best deals as they arise. 

One way to deal with the inherent volatility of crypto markets is to invest using stablecoins. The leading stablecoins — USDT, USDC and DAI — are readily available for staking on exchanges, though not directly on a blockchain.

Some crypto investors, in chasing the best possible rates, move their funds in and out of centralized and decentralized staking and lending opportunities. However, this strategy might backfire, especially with smaller investment amounts, due to the fees involved in withdrawing and depositing your funds on some platforms.

Thus, to earn a higher interest rate in the long term, it’s best to choose a trusted platform in which to stake and hold your crypto, instead of moving your assets around.

Another important consideration for maximizing your returns is the type of interest rate applicable to a staking or lending product. Some of these pay interest based on APY, while others use the APR calculation method.

The key difference is that APR is a simple interest rate calculation that doesn’t take compounding into account. On the other hand, APY is based on compounding interest. All other things being equal, an 

 with the exact same numeric interest rate.

Interest rates on crypto investments do change over time. These changes can be abrupt, and quite substantial. This is particularly true for DeFi lending investments on platforms like Compound, which has algorithmic interest rates that can change within a single day. On the other hand, staking interest rates are comparatively less volatile.

Are You Eligible to Earn Crypto Interest? 

Before making your first investment, check your eligibility, as requirements may vary from platform to platform. As the first, obvious requirement, you need to have some actual cryptocurrency funds on hand.

On most established centralized platforms, you also need to satisfy 

 (KYC) and residency requirements. The residency requirement is particularly relevant for Americans, as some CEXs outside of the U.S. don’t provide service to U.S. residents.

 (DYOR) so that you understand the risks and technicalities involved in crypto staking and lending.

Part 2: How to Start Earning Crypto Interest on Bybit

Bybit is one of the leading crypto trading and investment platforms in the world, offering a wide range of interest-bearing products. To start investing with Bybit, you’ll first need to 

. You can register your new account with Bybit via email and mobile.

Bybit offers you three primary ways to buy crypto on its platform easily. The most straightforward way is the 

 option, which provides a way to purchase cryptocurrency within seconds, and allows you to pay for cryptocurrency using a range of supported fiat currencies. Accepted payment methods for One-Click Buy include bank card payments and third-party payment channels. The latter option includes a range of third-party providers, such as Mercuryo, MoonPay and others.

Alternatively, you can buy crypto using the 

 option, which lets you set up a regular investment plan based on the popular 

 (DCA) strategy. When setting up your Auto-Invest options, you can choose the fiat currency used for the payment, the cryptocurrency of your choice, the total purchase amount and the frequency of regular DCA allocations 

 daily, weekly, bi-weekly or monthly. A great benefit of Auto-Invest is the ability to start your Bybit journey with a defined, conservative and highly popular trading strategy.

 option to buy your crypto at zero fees. Bybit’s P2P Trading platform allows two users to enter a transaction to buy or sell crypto and supports over 60 payment currencies. Transactions are between two users, with Bybit simply acting as the mediator during the P2P order execution.

Besides the abovementioned methods for buying crypto, you can also directly deposit crypto funds into your Bybit account from a variety of centralized and decentralized sources — for instance, accounts on other exchanges, 

 page on your Bybit account’s homepage. From there, choose the

section. The available cryptocurrencies will be shown in this section. Click on

next to the crypto you’d like to transfer to Bybit. Note that you’ll need to specify the asset being deposited and the decentralized network — for example, Bitcoin (BTC), 

 (TRX) — from which the funds are being sent. 

, you’ll see Bybit’s deposit address for the chosen crypto. Simply use this as the destination wallet address in your wallet or account on another exchange.

Part 3: 7 Ways to Earn Interest on Crypto With Bybit

There are seven key ways to earn interest or income on your crypto with Bybit. Let’s take a closer look at each one.

1. Earn Interest on Crypto with Staking (Bybit Savings)

 product that lets you earn competitive APRs over either fixed or flexible investment periods in a range of popular cryptocurrencies, including BTC, ETH and USDT. For flexible-term investments, the hourly interest accrued is distributed to you once a day at 12:30 AM UTC. You can unstake your funds at any time, making this a very flexible option for investors. APRs are determined by the type of coin used and the existing market conditions.

For fixed-term investments, APRs are determined on the day you start staking, and depend upon the type of coin and the chosen investment tenure. Bybit doesn’t charge any management fees for this product.

Bybit Savings users with a VIP1 or higher membership designation are also frequently offered special deals for these investments, such as high APRs on popular 

 pairs and region-specific campaign offers.

Staking crypto via Bybit Savings is suitable for those who would like to have guaranteed yields from popular coins, and — in the case of the flexible-term alternative — would like to retain the ability to get their funds back quickly. This is an excellent product for various types of investors, particularly beginners who are seeking guaranteed returns, and those who prefer secure, passive forms of deriving crypto income.

Beginner

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How to Earn Interest on Crypto With High Yields

Crypto Insights

blockscholes

In this report, we’ll guide you through a comprehensive checklist to identify potential signals that this latest rally has come to an end. 

Bybit x BlockScholes Bitcoin Rally Not Yet Over

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Our Crypto Insights report attempts to answer the key question of whether the current Bitcoin rally is over. We address this from many perspectives, including historical price action, Bitcoin’s correlation with macroeconomic factors, market sensitivity analysis, market asset rotation and institutional influence. 

In this report, we’ll guide you through a comprehensive checklist to identify potential signals that this latest rally has come to an end. After thoroughly evaluating all the indicators on the checklist, 

we conclude that the current Bitcoin bull cycle has not yet reached its conclusion

Historical Analysis of the Bitcoin Cycle Suggests the Rally May Not Be Over

Our analysis indicates that the current bull market has been ongoing for approximately 624 days, with a trough-to-all-time-high peak of 3.5x. This is significantly lower than the 20x trough-to-peak ratio observed in the previous cycle, from 2019 to 2022. However, based on the limited historical data of just three prior cycles, the average suggests there may be an additional 350 days remaining in the current run to surpass the previous peak.

Our analysis of Bitcoin's historical boom-and-bust cycles reveals a consistent pattern. In each previous instance, the broader altcoin market capitalization has risen in tandem with Bitcoin's run to new all-time highs (ATHs), only to then peak following Bitcoin's subsequent crash.

However, the current situation is different. Bitcoin's price peaks haven't been accompanied by the typical increase in market share for Ethereum and other altcoins. Furthermore, Bitcoin itself hasn’t continued pushing to successive new highs; instead, it’s been trading within a relatively tight range for the past four months.

These observations suggest the current market rally may not have yet reached a true peak, unlike the typical pattern seen in previous Bitcoin bull and bear cycles. The lack of altcoin exuberance, and Bitcoin's consolidation (rather than continued record-setting ascent), imply the current market dynamics differ from past cycles.

Our Findings Suggest BTC’s Correlation to Some Macro-Sensitive Assets Doesn’t Work This Time

We’ve examined a number of macroeconomic factors that have historically exhibited positive or negative correlations with Bitcoin. However, we’ve observed that some of these typical correlations aren’t holding true in the current market cycle.

For example, historically, loose monetary policy and a weaker U.S. dollar have acted as tailwinds for Bitcoin. Yet, despite the absence of these conditions in the present environment, Bitcoin is still experiencing a robust rally.

Additionally, personal savings rates have previously shown a positive correlation with Bitcoin's bull runs, but this relationship isn’t manifesting this time around. These observations suggest that current Bitcoin market dynamics are deviating from the patterns observed in prior boom-and-bust cycles.

ETF Flows Exhibit Higher Correlation With Bitcoin’s Price Movement

Until March 10, 2024, the amount of BTC held by Bitcoin Spot ETFs increased steadily, reflecting growing institutional demand that matched the rally of Bitcoin's spot price to a new ATH from early January. However, the abrupt end of these ETF inflows also correlates with the peak of Bitcoin's bull run in mid-March.

Immediately after this price peak (and continuing since), the pace of capital inflows into BTC Spot ETFs stopped abruptly. This suggests the pool of new institutional demand had been temporarily saturated. Crucially, this drop-off in fresh demand then impacted Bitcoin's spot price response to Apr 20, 2024, 

From these observations, institutional demand has been a key driver of Bitcoin's price action during this cycle. Changes in the flow of institutional capital into BTC Spot ETFs directly corresponded with the cryptocurrency's broader market dynamics, including the peak and subsequent price movements.

Bitcoin Halving Cycle Suggests the Bull Run Isn’t Over Yet

In examining historical Bitcoin price cycles, the cryptocurrency has tended to perform better in the period following each halving event. The observations outlined above suggest we may still see Bitcoin’s price continue to rise.

History Tells Us Current Downbeat Sentiment Doesn’t Necessarily Signal an End to the Rally

The currently downbeat market sentiment may not necessarily indicate an end to the ongoing Bitcoin bull run. Block Sholes' sentiment indicators take into account the embedded volatility in different types of derivatives.

One clear conclusion from the behavior of derivatives markets in the previous Bitcoin cycle is that dips in sentiment, even to relatively low levels, don’t always signal the conclusion of a bull market. In fact, the eventual peak of the 2021 cycle was achieved after a near-systemic blow to Bitcoin's hash power, which saw sentiment plummet to historically low levels before the market recovered and continued its ascent.

This historical precedent suggests that the current depressed sentiment observed in the market may not be an accurate predictor of an imminent end to the present Bitcoin bull run. The derivatives data tracked by Block Sholes implies that the current downbeat mood could be temporary, and doesn’t necessarily portend the conclusion of the crypto's current uptrend. 

Block Scholes x Bybit Report: The Bitcoin Rally May Not Yet Be Over

Grab Up to 5,000 USDT in Rewards

Grab Up to 5,000 USDT in Rewards