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.
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
— Ki Young Ju (@ki_young_ju) May 31, 2024
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.
