cryptoglobe.com
The flagship cryptocurrency Bitcoin ($BTC) has been seeing an influx of capital from whale wallets, which have been adding around $1 billion worth of $BTC per day, according to data from the cryptocurrency’s blockchain.
That’s according to the CEO of cryptocurrency analytics firm CryptoQuant, Ki Young Ju, who revealed on the microblogging platform X (formerly known as Twitter) that the robust accumulation suggests that these funds are “likely custody.”
In his post, Young-Ju highlighted a parallel between Bitcoin’s current behavior and the market activity of mid-2020, before a bull run in 2021. During that period, Bitcoin’s price remained relatively stable, yet on-chain activity, particularly over-the-counter (OTC) transactions involving institutional players, was exceptionally high.
Despite Bitcoin’s price being relatively stagnant over the past six months, the realized cap for new whales, a metric reflecting the total value at which large investors acquire Bitcoin, has seen significant growth.
Same vibe on #Bitcoin as mid-2020.
— Ki Young Ju (@ki_young_ju) May 31, 2024
Back then, $BTC hovered around $10k for 6 months with high on-chain activity, later revealed as OTC deals.
Now, despite low price volatility, on-chain activity remains high, with $1B added daily to new whale wallets, likely custody. https://t.co/1TcC7BwNUb pic.twitter.com/o3N1AHxSJm
The current trend, mirroring Bitcoin’s on-chain activity in 2020, could lead to a repeat of the subsequent bull run that culminated in record highs in 2021. Analysts believe Bitcoin is nearing its final resistance point at $69,000 before potentially breaking new ground.
As reported, a cryptocurrency analyst has recently suggested Bitcoin’s price could surge to the $156,000 mark by May 2025 based on historical $BTC price action after its halving events.
A Bitcoin halving sees the coinbase reward miners receive per block found get cut in half, effectively reducing in half the amount of new supply entering the market. The analysis revealed a compelling trend. Following the first halving in 2012, Bitcoin’s price skyrocketed a phenomenal 8,300%.
The second halving in 2016 witnessed a more moderate but still impressive increase of 288%. The more recent halving in 2020 sparked a 540% surge within a year, while the latest halving occurred in April of this year.
Taking all of this into account, the analyst suggested that the price of Bitcoin could skyrocket 127% from its level at the halving to between $115,00 to $156,000.
Featured image via Pixabay.