CryptoQuant CEO, Ki Young Ju, in a post on social media platform X, expressed his prediction of Bitcoin soaring to heights, just like it did in 2020. The prediction comes at a time when Bitcoin prices have been soaring and are on a trajectory of extended gains.
In the post, Ki Young Ju says, that when it came to OTC deals, BTC was trading at $10k for six months straight with a lot of on-chain activity during 2020. Currently, there is a lot of on-chain activity despite the low price volatility just like how it was back 4 years ago. With $1 billion being added to new whale wallets every day, perhaps for custody, the movement is mimicking the past trend.
He further adds that a year-high amount of BTC has been transferred, and those TXs do not originate from exchanges. All exchanges’ money flow ratio reached a one-year low, which mimics the 2020 path, likely indicating a surge in future prices.
Why is the BTC Price On a Steady Rise?
For the past month, BTC prices have been in the green for almost all trading sessions, according to data collected by CoinMarketCap. Due in part to an unexpected “seismic shift” in Washington that has precipitated a cryptocurrency battle between Republican presidential nominee Donald Trump and President Joe Biden, the price of bitcoin has surged back to its previous all-time high.
Alongside that, Forbes highlights that with the series of spot Bitcoin ETFs approved in January, the price of Bitcoin has increased over 60% this year. The U.S. Securities and Exchange Commission (SEC) shocked investors last week by approving a few spot Ethereum ETFs. With more and more regulatory bodies legitimizing digital assets, market participants have gained an amount of confidence in investing in cryptocurrencies.
Additionally, U.S. Treasury Secretary Jannet Yellen has stated that official regulatory power is needed for the cryptocurrency markets, and authorities in governments across the globe are actively debating cryptocurrency legislation. Establishing restrictions will provide institutional investors more clarity and perhaps even attract more of them to the market.
The consequences of the 2024 Bitcoin Halving event will last far into 2025, and if all the stars line up, Bitcoin might surpass the elusive $100k barrier. “Everything else” refers to the macroeconomic factors’ progress.
Interest rates, which saw sharp increases in 2023, may decline in 2025 if the world economy strengthens and inflation falls to the objective of 2%. That is, assuming they haven’t already declined by late 2024. Therefore Bitcoin is likely to rise in the upcoming years.
