The CEO of blockchain analytics firm CryptoQuant, Ki Young Ju, believes that the current volatility and on-chain activity in the market is reminiscent of the period when Bitcoin was trading at $10,000.
Ki Young Ju pointed out that the current price development of Bitcoin is similar to that of mid-2020 when the cryptocurrency was hovering around the $10,000 mark for an extended period before skyrocketing to over $60,000.
In a recent post on May 31, the CryptoQuant CEO highlighted that despite the relatively stable prices, there is significant on-chain activity, with whale wallets accumulating approximately $1 billion in crypto daily, likely for safekeeping.
At the time of writing, Bitcoin is trading at approximately $68,000, as per data from CoinGecko. The cryptocurrency has been trading within a range of $65,000 to $70,000 for weeks, indicating that if history repeats itself, we may not see significant volatility until late 2024 or early 2025.
In late March, Grayscale, an American asset manager, identified various on-chain and off-chain metrics suggesting that Bitcoin was in the midst of a bull run, drawing parallels to the 2021-2022 bull market, where gains in Bitcoin were followed by a surge in altcoin valuations.
Bitcoin continues to hold surprises for its investors. While it is the first time Bitcoin has hit a new all-time high before halving, historical data indicates that significant returns usually occur 300-500 days after halving events. With the most recent halving taking place on Apr. 19, Bitcoin may still have around 260 days before we see substantial price movements.
For more insights, Binance recently highlighted that Bitcoin faces scalability challenges, but there are promising solutions on the horizon.