CEO of CryptoQuant, a company specializing in cryptocurrency market data analytics, Ki Young Ju, shared an analysis suggesting that the current Bitcoin bull market is beginning, resembling the 2020 cycle.
According to Ki Young Ju, on-chain data indicating whale accumulation has proven accurate, and the reasons behind this accumulation are becoming clearer. In 2020, Bitcoin remained around $10,000 for six months with high on-chain activity, which later turned out to be linked to over-the-counter (OTC) deals. Similarly, despite limited price volatility in the current market, on-chain activity is high, with approximately $1 billion being added daily to new whale wallets. These additions are likely tied to custody purposes.
#Bitcoin bull market is starting, with data resembling 2020.
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— Ki Young Ju (@ki_young_ju) November 21, 2024
The analyst also highlights that mining costs have doubled following the most recent Bitcoin halving. Ki Young Ju noted that this creates upward pressure on prices to ensure mining profitability. A parallel is drawn to the 2020 halving when mining costs similarly increased but were soon offset by a parabolic bull run, which not only covered costs but also brought profitability.
Additionally, he pointed out that many traders are currently shorting Bitcoin, which is contributing to a potential short squeeze, fueling the bull market. He referenced a similar pattern from late 2020 when traders shorted Bitcoin during the price discovery phase, inadvertently driving the bull run through short squeezes.
Discussing year-over-year Q4 performance following Bitcoin halvings, Ki Young Ju noted that in the previous halving cycle, the bull rally commenced in Q4. He suggested that whales are unlikely to allow Q4 to pass with flat year-over-year performance, indicating potential market activity.
He further compared the current recovery, consolidation, and expansion phases with those from four years ago, observing similarities. During the 2020-2021 cycle, Bitcoin rose from $3,000 to $9,000 during the recovery phase, from $9,000 to $19,000 in the run-up to the previous all-time high, and from $20,000 to $68,000 during the full bull market. Similarly, in the 2023-2024 cycle, Bitcoin has moved from $15,000 to $45,000 during the recovery phase, from $45,000 to $68,000 in the lead-up to the prior all-time high, and continues to grow in the ongoing bull market phase.
Bitcoin Surges Past $97,000, While ETF Inflows Record $750M Inflows
As of the time of writing, Bitcoin is priced at $96,788, marking a 3.81% increase over the past 24 hours. The cryptocurrency’s 24-hour price range is between a low of $92,926 and a high of $97,813. Bitcoin’s market capitalization is currently $1.92 trillion, with a 24-hour trading volume exceeding $90.4 billion. Its market dominance stands at 60.34%, According to data from ConMarketCap.
As per SoSoValue, Bitcoin Exchange-Traded Funds (ETFs) saw inflows of nearly $750 million on Wednesday. Among these, BlackRock’s Bitcoin ETF (IBIT) received $627.7 million in inflows.
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