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Bitcoin, the biggest cryptocurrency by market cap, is experiencing a period reminiscent of mid-2020, according to CryptoQuant CEO Ki Young Ju. Despite the current low price volatility, on-chain activity remains robust, with a notable increase in whale wallet balances. Ju highlights that approximately $1 billion are being added daily to new whale wallets, suggesting significant accumulation and likely custodial activity.
In mid-2020, Bitcoin was characterized by low volatility and high on-chain activity, a precursor to the massive bull run that saw its price surge to all-time highs. Back then, in 2020, BTC hovered around $10,000 for six months with high on-chain activity, later revealed as OTC deals, the CryptoQuant CEO added.
Today, the market is witnessing similar conditions. The subdued price movements are juxtaposed with a flurry of activity on the blockchain, indicating strong underlying interest and potential future price action.
"Same vibe on Bitcoin as mid-2020. Back then, BTC hovered around $10,000 for 6 months with high on-chain activity, later revealed as OTC deals. Now, despite low price volatility, on-chain activity remains high, with $1 billion added daily to new whale wallets, likely custody," Ju noted.
The current surge in on-chain activity, paralleling the mid-2020 trends, could be indicative of a bullish undercurrent in the crypto market. The substantial daily increase in whale wallet activity points to a strategic accumulation of Bitcoin, hinting at collective anticipation of future market movement.
Tomiwabold OlajideWhile the increased on-chain activity and whale accumulation are encouraging signs, Bitcoin's price volatility remains unusually low. Historically, periods of low volatility have often preceded significant price movements. This current phase of consolidation might be setting the stage for a major breakout, similar to the pattern seen in 2020.
At the time of writing, BTC was up 0.72% in the last 24 hours to $67,986. After attaining highs of $71,980, Bitcoin declined to enter range trading, a trend that persists even at press time.
Gamza Khanzadaev
Godfrey Benjamin
Denys Serhiichuk
