Ki Young Ju, founder, and CEO of CryptoQuant, has drawn intriguing parallels between Bitcoin’s current behavior and its mid-2020 trends. Despite price stability, Ju highlights that the current surge in on-chain activity mirrors the period in 2020 when the cryptocurrency remained stable at around $10,000 for roughly six months.
Bitcoin Following 2020 Pattern
In a recent tweet, Ki Young Ju drew parallels between Bitcoin’s current state in 2024 and its situation in mid-2020. However, in mid-2020, Bitcoin maintained a price level of around $10,000 for six months, a phase characterized by notable on-chain activity. However, subsequent analysis revealed that most of this activity comes from over-the-counter (OTC) deals.
Fast forward to 2024, and Bitcoin appears to be experiencing a similar phase of price stability coupled with robust on-chain activity. Despite the absence of significant price fluctuations, on-chain metrics continue to paint a picture of substantial activity within the Bitcoin network.
Notably, Ju points out that approximately $1 billion is being added daily to new whale wallets, a trend suggesting increased custody activity rather than speculative trading.
Who’s Selling? Bitcoin!!!
Despite significant buying from institutional investors and exchange-traded funds (ETFs), Bitcoin’s price doesn’t seem to be responding as expected. This raises the question: who’s selling?
The answer could be retail investors taking profits, miners selling their rewards, or long-term holders liquidating their positions. This dynamic suggests a market in equilibrium, where both buying and selling are occurring steadily.
What If the Trend Continues?
If the current trend, resembling Bitcoin’s on-chain activity in 2020, persists, it could spell big changes for its price. Back in 2020, Bitcoin saw a surge in value, kicking off a bull run that lasted into 2021, with Bitcoin reaching new record highs.
Past data indicates that increased on-chain activity often precedes major price surges. If this pattern holds, it might 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 in less than a year.
