CryptoQuant CEO: Present situation mirrors that of mid-2020 in the cryptocurrency landscape.
The CEO of CryptoQuant, Ki Young Ju, has observed that the current volatility and on-chain activity in the Bitcoin market resemble the period when Bitcoin was trading at $10,000. Ki Young Ju compared the present situation to the mid-2020 timeframe when Bitcoin remained around the $10,000 mark for months before eventually surging past $60,000. Despite the relatively low price volatility, Ki Young Ju noted that on-chain activity remains strong, with whale wallets accumulating approximately $1 billion in crypto daily, likely for custody purposes. At the time of writing, Bitcoin is trading at approximately $68,000, maintaining a range between $65,000 and $70,000 for several weeks. This suggests that if the pattern seen in mid-2020 continues, significant volatility may not occur until late 2024 or early 2025. In March, Grayscale, an American asset manager, also highlighted on-chain and off-chain metrics suggesting that Bitcoin was in the middle of a bull run, drawing parallels to the 2021-2022 bull run that saw increased altcoin valuations following Bitcoin’s gains. Despite setting a new all-time high before halving for the first time, historical data indicates that significant returns typically occur 300-500 days after halving events. With the most recent halving occurring on April 19, Bitcoin still has at least 260 days before significant price movements may be observed. Binance, a prominent cryptocurrency exchange, has acknowledged that Bitcoin faces scalability challenges but remains hopeful that solutions will be found.
