In recent analysis, Ki Young Ju, the co-founder and CEO of the analytics platform CryptoQuant, examines Bitcoin’s current state as the leading cryptocurrency hovers around 10% below its 2023 high. Despite this correction, Ki Young Ju remains optimistic, asserting that Bitcoin is still firmly within a bull cycle. The primary reason behind this positive outlook is the observation of low selling pressure, attributed to the significant portion of BTC acquired or mined over six months ago that remains static.
According to Ki Young Ju, approximately 71% of the realized cap consists of unmoved BTC that has not changed hands for more than six months, suggesting that long-term holders are not rushing to sell their positions. This steady holding behavior from long-term investors indicates a lack of urgency to liquidate their assets, a favorable sign for the overall market sentiment.
As of the time of writing, Bitcoin is currently trading at $29,178, representing an 8.3% decline from its 2023 high of $31,806. While the CryptoQuant CEO acknowledges the price correction, he emphasizes that this doesn’t guarantee an immediate price increase. Despite this caution, he believes that the likelihood of Bitcoin being at the cyclic top is relatively low for now.
Ki Young Ju also highlights the significance of stablecoins in the crypto market. These digital assets pegged to stable fiat currencies, such as the USDT (Tether), play a crucial role in providing liquidity and facilitating trading. He notes that the market may remain relatively calm until there is an increase in the supply of stablecoins, which would boost buying potential among investors.
At the time of the analysis, Ki Young Ju pointed out that Tether (USDT) was increasingly dominating the stablecoin market, with a market cap of $83.8 billion, significantly surpassing its closest competitor, USD Coin (USDC), with a market cap of $26.6 billion.
In conclusion, while Bitcoin experiences a temporary correction, the analysis by CryptoQuant’s CEO remains optimistic, highlighting the encouraging trends of low selling pressure from long-term holders and the potential impact of stablecoin supply on the market’s future performance. As the cryptocurrency landscape continues to evolve, the role of stablecoins and the strategies of long-term investors will undoubtedly shape Bitcoin’s trajectory in the coming months.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.