CryptoQuant founder and CEO Ki Young Ju has drawn parallels between the current market dynamics and those in the mid-2020 period that preceded Bitcoin’s previous bull run, raising expectations and speculation about the potential for a similar historical pattern to unfold in the near future.
In a post on X (formerly Twitter) on May 31, Ki, referencing data from CryptoQuant, noted that on-chain activity remains high despite low price volatility, with around $1 billion being added daily to new whale wallets, likely for custody purposes.
Ki’s comparison suggests that the current market dynamics closely mirror those observed in 2020, which preceded Bitcoin’s surge to $64,000 by April 2021. He alluded to possible accumulation by whales and rising interest in the market due to significant inflows into Bitcoin, even with its low price volatility. Ki believes this pattern could be a strong bullish signal, similar to the surge in over-the-counter (OTC) sales volume witnessed in February 2019.
The CryptoQuant CEO’s observations have sparked varied reactions from the crypto community. One user on X, identified as @Andrian Stewart questioned whether Bitcoin is “still a few months away from a breakout,” while another X user, @Odajubb was sceptical, pointing out that the price isn’t “going up” despite the accumulation and ETF inflows.
Notably, pseudonymous crypto analyst CryptoCon recently described the current low volatility around previous all-time highs as “healthy price action.”
According to CoinShares’ latest weekly report, there is an ongoing daily accumulation of $1 billion in Bitcoin, primarily driven by institutional and long-term investors seeking to increase their exposure to spot Bitcoin ETFs (Exchange-Traded Funds). These ETFs allow investors to buy shares representing Bitcoin, making it easier for large investors to gain exposure without directly handling the cryptocurrency.
Recently, BlackRock’s iShares Bitcoin Trust (IBIT) surpassed Grayscale Bitcoin Trust (GBTC) to become the largest Bitcoin exchange-traded fund (ETF) globally. According to the latest available data, IBIT holds 289,057 BTC in its portfolio, while GBTC holds approximately 286,981 BTC.
Disclaimer: This report is intended solely for informational purposes and should not be considered trading or investment advice. Nothing herein should be construed as financial, legal, or tax advice. Trading or investing in cryptocurrencies carries a considerable risk of financial loss. Always conduct due diligence.
If you want to read more news articles like this, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, Instagram, and CoinMarketCap Community.
“Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”
