Is the Next Bull Run Brewing as Bitcoin Price Mirrors 2020 Trends?
Bitcoin’s current on-chain activity is reminiscent of the mid-2020 period, despite stable prices. This indicates an increase in custody activity, potentially indicating a market in balance. If this trend continues, it could signal a potential price surge for Bitcoin similar to the bull run of 2020.
Ki Young Ju, the visionary founder and CEO of CryptoQuant, has generated excitement with his recent observations on Bitcoin’s current trajectory. He draws intriguing parallels to its behavior in mid-2020, when Bitcoin remained around the $10,000 mark for six months. During this time, there was a hive of on-chain activity, which was later revealed to be driven by over-the-counter (OTC) deals.
In 2024, Bitcoin finds itself in a similar situation, with a calm price scene and robust on-chain activity. Despite the lack of significant price swings, metrics within the Bitcoin network indicate an active ecosystem. Ju notes that a staggering $1 billion is flowing into new whale wallets daily, suggesting increased custody activities rather than speculative trading.
The question arises: Who is selling Bitcoin despite significant institutional investments and the rise of exchange-traded funds (ETFs)? The answer may lie in retail investors cashing in on profits, miners offloading rewards, or long-term holders selling their positions. This dance between buyers and sellers indicates a balanced market with steady transaction flow in both directions.
If the current trend, similar to Bitcoin’s on-chain dynamics in 2020, continues, it could lead to significant shifts in its price. Historical data suggests that heightened on-chain activity often precedes substantial price increases. If this pattern persists, it could mean a prolonged period of upward momentum for Bitcoin’s price.
Many experts eagerly anticipate Bitcoin not only revisiting its previous peak but potentially surpassing it, reaching beyond 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 are promising.