Fintech
Is the next bull run getting ready?
Ki Young Ju, the visionary founder and CEO of CryptoQuant, has sparked a wave of excitement with his recent remarks on Bitcoin’s current trajectory. Drawing interesting parallels to his behavior in mid-2020, Ju highlights a surge in on-chain activity despite prices seemingly holding steady at $10,000 for about six months.
Could this be a sign of things to come? AND Bitcoin Are you preparing for another epic ride? Read on to explore this mystery and find out what the future may hold for the world’s leading cryptocurrency.
History repeats itself
In a recent tweet, Ki Young Ju draws a disturbing comparison between Bitcoin’s current state in 2024 and its behavior in mid-2020. Recall the period when Bitcoin hovered around the $10,000 mark for six months. It was not a period of stagnation, but rather a hive of on-chain activity. However, upon closer examination, it emerged that much of this activity was derived from OTC (over-the-counter) trades.
Fast forward to 2024, Bitcoin finds itself in a similar scenario: a calm price scene with robust on-chain activity. Despite the absence of strong price swings, internal parameters of the Bitcoin network paint the picture of an active ecosystem.
Ju, with his keen intuition, notes the staggering $1 billion flowing into the whales’ new wallets every day, suggesting a surge in custodial activity rather than mere speculative trading.
Who is dumping BTC?
Despite significant institutional investment and the rise of Exchange Traded Funds (ETFs), Bitcoin’s price seems strangely unchanged. This raises the question: who is selling?
The answers could be found here retail investors cash in profits, miners dump rewards, or long-term holders sell positions. This dance between buyers and sellers indicates a balanced market, where transactions constantly flow in both directions.
What future for Bitcoin?
If the current trend, similar to Bitcoin’s on-chain dynamics of 2020, were to continue, it could herald significant changes in its price. Recall 2020, when the value of Bitcoin increased, triggering a bull run that lasted until 2021, eventually reaching record highs.
Historical data suggests that the intensification of chain activity often precedes substantial price increases. It should this the pattern persistsit could mean a prolonged period of upward momentum for the price of Bitcoin.
Many experts eagerly anticipate Bitcoin to not just revisit its previous peak but potentially surpass it, possibly soaring past the monumental $100,000 mark in less than a year.
Will Bitcoin finally break its all-time high? Only time will tell, but the signs look promising.
Also check: Peter Brandt predicts the price of Bitcoin will rise 344% versus gold in 12 months