While it is true that at the time of writing BTC is trading at a price it first saw 75 days ago, there is absolutely nothing to be concerned about in terms of the fundamentals and long-term outlook of the monetary asset.
The long-term HODLer net position change, which measures the 30-day change in supply held by long-term bitcoin holders, recently flipped positive, and the data from Glassnode shows that over the last 30 days, HODLers have accumulated 93,638 BTC more than they have sold.
Not only have long-term HODLers been net accumulating over the last month, but miners are as well.
Another fascinating metric to look at is the Puell Multiple, which measures the dollar value of bitcoin issued to miners in relation to its 365-day moving average.
Obviously, the market value of new bitcoin issued greatly increases in a bull market, and this can be seen not only during the recent run up but also past bull market cycles following the halving.
Another promising metric which puts into context the exponential growth occurring around bitcoin and the Bitcoin network is realized market capitalization.
To put this move into context, the realized capitalization of bitcoin at the height of the previous bull market was $90 billion.
Short-term price fluctuations occur on bitcoin as price is set on the margin, and especially with the growing prevalence of derivatives and leverage in the ecosystem, total market capitalization can see explosive growth when actual capital inflows and economic activity remain somewhat muted.
Debt loads across the global economic system are at all-time highs, and central banks have painted themselves into a corner in terms of policy optionality.
Either central banks continue to inject liquidity into financial markets and the risk on everything rally continues, as debt continues to become cheaper in real terms, and the discounted valuations of every asset class skyrocket, or they collectively take away the punchbowl, credit contracts and markets witness a deflationary event similar to what was witnessed in March 2020.
In this deflationary scenario, anything with counterparty risk is something you should hold with extreme caution.
Without going too much deeper on this matter, bitcoin is the solution to both of these market outcomes.
The fundamentals of bitcoin and the Bitcoin network remain as strong as ever, and in hindsight the shortsightedness of many prominent bitcoin skeptics will prove to again be pure folly.