Market Cap Growth Signals Extended Cycle
Ki Young Ju, CEO of blockchain analytics firm CryptoQuant, believes Bitcoin’s current bull cycle is only halfway through. He points to the faster growth of BTC’s market cap compared to its realized cap, a trend that historically lasts around two years.
“If this pattern continues, the bull cycle might end by April 2025,” Young Ju predicts.
Short-Term Holders Selling at a Loss
CryptoQuant notes that short-term holders are selling Bitcoin at low or negative profits, indicating a decrease in selling pressure. This is because traders have exhausted their unrealized profits.
Stable OTC Balances
The firm also observes that Bitcoin balances at over-the-counter (OTC) trading desks have stabilized, suggesting a reduction in supply entering the market.
Cautionary Note
However, CryptoQuant cautions that demand from permanent holders and large investors needs to increase to sustain the price rally.
