The head of blockchain analytics firm CryptoQuant Ki Young Ju says the current volatility and on-chain activity resembles the timeframe when Bitcoin was trading at $10,000.
According to Ki Young Ju, the current landscape of Bitcoin‘s price development resembles that of the mid-2020 timeframe, during which the largest cryptocurrency by market value remained around the $10,000 mark for several consecutive months before surging beyond the $60,000 mark.
Same vibe on #Bitcoin as mid-2020.Back then, $BTC hovered around $10k for 6 months with high on-chain activity, later revealed as OTC deals.Now, despite low price volatility, on-chain activity remains high, with $1B added daily to new whale wallets, likely custody. https://t.co/1TcC7BwNUb pic.twitter.com/o3N1AHxSJm
— Ki Young Ju (@ki_young_ju) May 31, 2024
In an X post on May 31, the CryptoQuant CEO noted that despite the relatively low price volatility, on-chain activity remains robust, with approximately $1 billion in crypto being accumulated among whale wallets on a daily basis, likely for custody purposes.
“Same vibe on Bitcoin as mid-2020. Back then, BTC hovered around $10,000 for six months with high on-chain activity, later revealed as OTC deals.”
Ki Young Ju
As of press time, Bitcoin is trading at around $68,000, according to data from CoinGecko. The cryptocurrency has maintained a range between $65,000 and $70,000 for several weeks now, suggesting that if it follows a similar pattern to that seen in mid-2020, significant volatility may not occur until late 2024 or early 2025.
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In late March, American asset manager Grayscale pointed out several on-chain and off-chain metrics indicating that Bitcoin was in the “middle of the bull run,” drawing comparisons to the 2021-2022 bull run, during which Bitcoin’s gains were followed by a notable increase in altcoin valuations.
Bitcoin still has the potential to surprise its holders. While this is the first time Bitcoin has set a new all-time high before halving, historical data suggests that the cryptocurrency typically experiences significant returns only after 300-500 days following halving events. With the latest halving occurring on Apr. 19, Bitcoin still has at least 260 days before significant price movements may become apparent.
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