The CEO and founder of on-chain analytics firm CryptoQuant has shared insights on how the current Bitcoin bull cycle could potentially last until mid-2025. In a recent blog post, Ki Young Ju discussed a pattern observed in previous cycles where old whales, who are long-term holders of Bitcoin, tend to take profits during bull markets. This action results in new capital entering accumulation addresses, which are wallets that have not been used to sell Bitcoin in the past. These addresses typically belong to investors who hold onto their Bitcoin and do not partake in selling during bull markets.
The accumulation addresses play a crucial role in absorbing selling pressure from profit-taking whales, thus contributing to the overall resilience of the market during upward price trends. By analyzing the Realized Price metric, which reflects the average cost basis of investors in the accumulation addresses cohort, Young Ju identified a pattern of increasing realized prices during previous bull runs. This indicates that investors in these addresses were accumulating more Bitcoin as prices rose, offsetting profit-taking activities by other market participants.
The recent uptrend in the Realized Price for accumulation addresses suggests that these long-term holders are once again absorbing profits from old whales, a trend that typically lasts for about 18 months in previous cycles. With the current rise in the indicator lasting for around four months, there could potentially be another 14 months of profit-taking absorption ahead. Based on historical data, this could mean that the current Bitcoin bull cycle might extend until mid-2025, indicating a prolonged period of bullish momentum for the cryptocurrency.
Bitcoin’s price has surged close to the $70,000 mark in recent days, reflecting the positive sentiment surrounding the cryptocurrency amidst a broader market rally. The upward momentum in Bitcoin’s price is supported by factors such as increased institutional adoption, growing interest from retail investors, and ongoing developments in the blockchain ecosystem. As the market continues to evolve and mature, Bitcoin’s role as a store of value and potential hedge against inflation is becoming increasingly recognized by a wider range of investors.
Overall, the insights shared by CryptoQuant’s CEO provide valuable perspectives on the market dynamics driving the current Bitcoin bull cycle. By understanding the behavior of key market participants such as old whales and accumulation addresses, investors can gain a better grasp of the long-term trends impacting Bitcoin’s price trajectory. With the potential for the current bull cycle to extend until mid-2025, this analysis offers valuable insights for market participants looking to navigate the volatile and ever-changing landscape of the cryptocurrency market.
