Is the Next Bull Run Ahead? CryptoQuant CEO Points to Bitcoin’s Resemblance of Mid-2020 Trends
Article Rewrite:
Key Points:
– The CEO of CryptoQuant, Ki Young Ju, has drawn similarities between Bitcoin’s current behavior and its mid-2020 trends.
– Despite price stability, there has been a surge in on-chain activity similar to the period when Bitcoin remained stable at around $10,000 for six months.
– Experts predict that Bitcoin could surpass its previous highs and potentially reach $100,000 within a year.
Ki Young Ju, the founder and CEO of CryptoQuant, has made an interesting observation regarding Bitcoin’s current state, comparing it to its behavior in mid-2020. Although the price has remained stable, Ju points out that the recent increase in on-chain activity resembles the period when the cryptocurrency maintained a steady value of around $10,000 for six months.
In a recent tweet, Ju highlighted the similarities between Bitcoin’s current situation in 2024 and its behavior in mid-2020. However, during the mid-2020 period, Bitcoin’s price remained relatively stable at $10,000, and there was significant on-chain activity. Subsequent analysis revealed that most of this activity was attributed to over-the-counter (OTC) deals.
Fast forward to 2024, and Bitcoin seems to be going through a similar phase of price stability accompanied by robust on-chain activity. Despite the lack of significant price fluctuations, on-chain metrics indicate substantial activity within the Bitcoin network.
Notably, Ju mentions that approximately $1 billion is being added daily to new whale wallets, indicating an increase in custody activity rather than speculative trading.
Despite considerable buying from institutional investors and exchange-traded funds (ETFs), Bitcoin’s price has not responded as expected. This raises the question of who is selling. It could be retail investors taking profits, miners selling their rewards, or long-term holders liquidating their positions. This suggests a market in a state of equilibrium, with both buying and selling occurring steadily.
If the current trend, resembling Bitcoin’s on-chain activity in 2020, continues, it could have significant implications for its price. In 2020, Bitcoin experienced a surge in value, initiating a bull run that lasted into 2021 and resulted in new record highs.
Historical data indicates that increased on-chain activity often precedes major price surges. If this pattern holds true, it could mean a prolonged period of upward movement for Bitcoin’s price.
Many experts are already anticipating Bitcoin to surpass its previous peak and potentially reach $100,000 within a year.