Key Points
- CryptoQuant CEO Ki Young Ju identifies similarities between current Bitcoin market activity and mid-2020 trends.
- Despite low price volatility, Bitcoin is seeing high on-chain activity and significant accumulation.
CryptoQuant CEO Ki Young Ju has drawn parallels between the current state of the Bitcoin market and the trends observed in mid-2020.
Bitcoin Market Activity Resembles Mid-2020
On May 31, Ju reported high on-chain activity and a significant increase in Bitcoin (BTC) accumulation. These trends are similar to those seen in 2020’s accumulation phase, which resulted in Bitcoin’s price skyrocketing to $64,000 by April 2021.
Ju compared the current market activity to the mid-2020 period when Bitcoin hovered around $10,000 for six months. Despite low price volatility, on-chain activity was high, with $1 billion added daily to new whale wallets, likely for custody.
Bitcoin Whales: High Activity, Low Volatility
Despite the low price volatility, Ju’s comparative chart shows significant movement into Bitcoin. This pattern suggests potential Bitcoin accumulation by whales and increased market interest. However, community responses to Ju’s findings were mixed.
Some users questioned if Bitcoin is still a few months away from a breakout, while others expressed doubt, noting that the price is not rising despite the accumulation and ETF inflows.
In 2020, Bitcoin’s price stabilized around the $10,000 level for several months. During this period, there was an increase in on-chain activity, attributed to over-the-counter (OTC) deals. This accumulation phase and high activity led to Bitcoin’s price reaching around $29,000 by the end of 2020.
Comparing the current market dynamics with those of 2020, Ju suggests that the ongoing trends strongly resemble the previous lead-up to a bull run, raising high expectations for the market.
Crypto analysts suggest that Bitcoin is battling its “last resistance” of $69,000 before setting new all-time highs — a peak reached during the 2021 bull run. Despite speculation sparked by the ongoing daily $1 billion Bitcoin accumulation, a pseudonymous crypto analyst described the current low volatility around previous all-time highs as “healthy price action.”
The 2024 election is already being disrupted by crypto voters, and this trend is expected to continue.
