CryptoQuant founder and CEO Ki Young Ju has drawn attention to a remarkable similarity between the current Bitcoin market activity and that of mid-2020. In a recent post, Ki’s analysis unveiled a significant increase in on-chain activity and a sharp rise in Bitcoin accumulation, reminiscent of the accumulation phase in 2020 that ultimately led to Bitcoin surging to $64,000 by April 2021.
Cointelegraph reached out to Ki for a comment but received no response before the article’s publication deadline.
Despite the relatively low levels of price volatility, Ki’s comparative chart titled “BTC: Realized Cap for New Whales” reveals substantial movement into Bitcoin. While this pattern suggests potential accumulation by whales and increased market interest, the response from the community has been mixed. One user questioned whether Bitcoin is still a few months away from a breakout, while others expressed skepticism, pointing out that the price is not rising despite the accumulation and inflow of funds into exchange-traded funds (ETFs).
In 2020, Bitcoin’s price stabilized around $10,000 for several months, during which there was a surge in on-chain activity, predominantly driven by over-the-counter (OTC) deals, as mentioned by Ki. This accumulation phase and high activity eventually propelled Bitcoin’s price to approximately $29,000 by the end of the year.
When comparing Ki’s chart for 2024 with that of 2020, it becomes evident that the ongoing market dynamics closely resemble the lead-up to the previous bull run, indicating a historical parallel with high expectations.
Crypto analysts believe that Bitcoin’s price is currently battling its “last resistance” at $69,000 before reaching new all-time highs (ATHs) comparable to those achieved during the 2021 bull run. Despite speculation within the community, fueled by the daily accumulation of $1 billion worth of Bitcoin, a pseudonymous crypto analyst named CryptoCon recently described the current low volatility around previous ATHs as “healthy price action.”
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