Bitcoin Still Has a Long Way to Go Before Reaching Its Top, Says CryptoQuant CEO
According to Ki Young Ju, the co-founder and CEO of analytics platform CryptoQuant, there is still a “long way to go” before Bitcoin reaches its cyclical top. Here’s why:
- 63% of Bitcoin’s realized cap hasn’t moved in more than six months.
- Realized cap is an on-chain metric that provides a better estimate of Bitcoin’s market capitalization by excluding long-lost and unclaimed coins.
- In previous cycles, the percentage of Bitcoin’s realized cap that hadn’t moved during the cycle top was much lower: 15% in 2021, 5% in 2018, and 5% in 2014.
Furthermore, Bitcoin currently has triple the hash rate it had at the same price point in 2021. The hash rate is an indicator of the network’s processing power and security.
- A higher hash rate indicates a stronger network.
Additionally, 18,000 BTC recently moved from Coinbase to non-exchange addresses, which are likely custodial wallets. This suggests increased demand for Bitcoin outside of exchanges.
Despite these positive indicators, Bitcoin is currently trading at $52,205. It has seen a 5% increase in the past week and an 18% increase since the beginning of the year.
Hot Take: Bitcoin’s Journey Isn’t Over Yet 🚀
While Bitcoin has been performing well lately, there are still several factors indicating that its journey is far from over:
- The high percentage of Bitcoin’s realized cap that hasn’t moved in more than six months suggests that there is still significant holding and accumulation happening.
- The tripled hash rate compared to the same price point in 2021 indicates a stronger network and increased security, making Bitcoin more attractive to investors.
- The movement of 18,000 BTC from Coinbase to non-exchange addresses shows growing demand for Bitcoin outside of traditional exchanges.
All these factors suggest that Bitcoin still has room to grow and reach new highs. So buckle up and enjoy the ride!
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