CryptoQuant 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 revealed a notable increase in on-chain activity and a sharp surge in Bitcoin accumulation, reminiscent of the accumulation phase in 2020 that ultimately led to Bitcoin skyrocketing to $64,000 by April 2021.
Cointelegraph reached out to Ki for a comment, but unfortunately did not receive a response before the article’s publication deadline.
Despite the relatively low levels of price volatility, Ki’s “BTC: Realized Cap for New Whales” chart showcases significant movement towards Bitcoin. While this pattern suggests potential accumulation by Bitcoin whales and increased market interest, the community response to Ki’s findings has been mixed.
One user pondered whether Bitcoin is still a few months away from a breakout, while others expressed skepticism, noting that the price has not been rising despite the accumulation and inflow of funds from ETFs.
Looking back at Bitcoin’s accumulation phase in 2020, the price of BTC remained stable around the $10,000 mark for several months. This period saw a surge in on-chain activity, which was later attributed to over-the-counter (OTC) deals, as mentioned by Ki. Ultimately, this accumulation phase and high activity resulted in Bitcoin’s price reaching approximately $29,000 by the end of the year.
When comparing Ki’s charts for 2024 and 2020, it becomes evident that the current market dynamics closely resemble the lead-up to the previous bull run, indicating a historical parallel and raising high expectations.
According to crypto analysts, Bitcoin’s price is currently facing its “last resistance” at $69,000 before potentially reaching new all-time highs (ATHs), which were achieved during the 2021 bull run. Despite speculation within the community, fueled by the daily accumulation of $1 billion worth of BTC, pseudonymous crypto analyst CryptoCon recently described the current low volatility around previous ATHs as “healthy price action.”
In other news, the influence of crypto voters on the 2024 election is already causing disruptions and is expected to continue, as highlighted in a magazine article.