CryptoQuant CEO Analyzes Differences Between Current Bull Market and Bubble
CryptoQuant CEO Ki Young Ju analyzed current trends in the Bitcoin market, focusing on whale accumulation and price dynamics.
Changing Narrative of Bitcoin Whales
Young Ju noted a shift in perceptions surrounding large Bitcoin investors, known as whales. Whale accumulation news has become routine, lacking the significant market impact it once had two to three years ago.
The narrative of whale accumulation on #Bitcoin has become so common that it’s now daily chatter.
Just 2–3 years ago, news of whales accumulating would send shockwaves through the market. Today, it’s no longer breaking news—it’s just expected, routine information.
This shift… pic.twitter.com/7zftwtZh8S
— Ki Young Ju (@ki_young_ju) December 26, 2024
The CEO attributed this change to retail investors withdrawing from Bitcoin, allowing whales to dominate the market. While many have recognized this narrative shift, discussions remain limited.
Young Ju asserted that the current market is not a bubble despite being in a bull cycle, defining a bubble as a scenario where market prices significantly exceed capital inflows. Current on-chain data indicates $7 billion is entering the Bitcoin market weekly, supporting existing price levels.
He predicted potential corrections for Bitcoin, estimating drops would not exceed 30% and would likely be short-lived. A substantial rebound is anticipated, with prices potentially rising over 30%. He expressed confidence that the peak of the current Bitcoin cycle is yet to come and dismissed predictions of an imminent bear market, urging attention to on-chain data.
What Bitcoin MVRV Shows
Young Ju shared insights using the “BTC: True MVRV chart,” which measures the Market Value to Realized Value ratio, indicating whether a cryptocurrency is overvalued or undervalued based on historical transaction data. An MVRV above 4 suggests significant overvaluation, while below 1 indicates undervaluation, typically aligning with market bottoms.
The chart shows the MVRV ratio at approximately 1.8, placing it in “Strong Sell” territory but indicating that Bitcoin is not excessively overvalued despite its price rise.
Currently, Bitcoin has corrected by over 15% from its all-time high of $108,000 last week, trading down 3% in the last 24 hours at $95,202.