Alyssa Davidson
Posted: Nov 21, 2024 3:45 AM Updated: Nov 21, 2024 3:45 AM
Correction and fact check date: November 21, 2024, 3:45 AM
briefly
Joo Ki-young shared his analysis that the current Bitcoin bull market is starting similarly to the 2020 cycle.
Joo Ki-young, CEO of CryptoQuant, a company specializing in cryptocurrency market data analysis, shared his analysis that the current Bitcoin bull market is starting similar to the 2020 cycle.
According to Joo Ki-young, on-chain data showing whale accumulation has proven to be accurate, and the reasons for this accumulation are becoming increasingly clear. In 2020, Bitcoin hovered around $10,000 for six months due to high on-chain activity, which was later revealed to be linked to over-the-counter (OTC) trading. Likewise, despite limited price volatility in the current market, on-chain activity is high, with approximately $1 billion being added to new whale wallets every day. This addition is likely related to custody purposes.
The analyst also highlights that mining costs have doubled since the most recent Bitcoin halving. Joo Ki-young pointed out that this creates upward price pressure to ensure mining profitability. Parallels are drawn with the 2020 halving, where a similar increase in mining costs was soon offset by a parabolic bull market that not only covered costs but also brought profitability.
He also pointed out that many traders are currently selling Bitcoin, contributing to potential selling pressure and fueling the bull market. He cited a similar pattern to late 2020, when traders sold Bitcoin during the price discovery phase, inadvertently driving the rally through selling pressure.
Kiyoung Joo discussed the fourth quarter performance compared to the same period last year after the Bitcoin halving, noting that in previous halving cycles, the rally began in the fourth quarter. He suggested that whales would not be allowed to deliver flat year-over-year performance in the fourth quarter, indicating potential market action.
He also compared the current recovery, consolidation and expansion phase with the phase four years ago and found similarities. During the 2020-2021 cycle, Bitcoin rose from $3,000 to $9,000 during the recovery phase, from $9,000 to $19,000 as it surged to previous highs, and from $20,000 to $68,000 during the overall bull market. Likewise, in the 2023-2024 cycle, Bitcoin rose from $15,000 to $45,000 during the recovery phase, from $45,000 to $68,000 to its previous high, and continues to grow during the ongoing bull market phase.
Bitcoin surged past $97,000 and ETF inflows hit $750 million.
As of this writing, the price of Bitcoin is $96,788, up 3.81% in the last 24 hours. The cryptocurrency’s 24-hour price range ranges from a low of $92,926 to a high of $97,813. Bitcoin’s market capitalization is currently $1.92 trillion, with 24-hour trading volume exceeding $90.4 billion. Its market dominance is 60.34%, according to ConMarketCap data.
Bitcoin exchange-traded funds (ETFs) saw inflows of nearly $750 million on Wednesday, according to SoSoValue. Of these, $627.7 million came into BlackRock’s Bitcoin ETF (IBIT).
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About the author
As MPost’s resident journalist, Alisa specializes in the broad areas of cryptocurrencies, zero-knowledge proofs, investing, and Web3. With a keen eye for new trends and technologies, she provides comprehensive coverage to inform and engage readers about the ever-evolving digital financial landscape.
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Alyssa Davidson
As MPost’s resident journalist, Alisa specializes in the broad areas of cryptocurrencies, zero-knowledge proofs, investing, and Web3. With a keen eye for new trends and technologies, she provides comprehensive coverage to inform and engage readers about the ever-evolving digital financial landscape.
more articles