According to CryptoQuant CEO Ki Young Ju, Bitcoin is currently in the midst of a bull market. Despite a slight dip earlier this week, the overall trend indicates an ongoing bullish phase for Bitcoin. He shares his perspective with his 346,000 followers on X, explaining that Bitcoin’s market cap continues to grow faster than its realized cap—a pattern observed in past bull cycles lasting approximately two years.
If this trend holds, the current bull market for Bitcoin could potentially extend until about April 2025. The realized cap metric captures the last known price of each Bitcoin transaction, providing insights into the overall profitability or loss among Bitcoin holders. Ju suggests that the current metrics signify a healthy bull market, as the market cap’s growth outpaces the realized cap.
“Hey bears, I’m sorry, but Bitcoin is still in the middle of the bull cycle. When market cap grows faster than realized cap, it may signal a bull market; the reverse could indicate a bear market. This is likely due to more exchange trading in bulls and increased on-chain OTC (over-the-counter) activity in bears.”
Why Bitcoin’s Bull Market May Extend Until 2025
As Bitcoin continues its bull cycle, it is crucial to understand the underlying factors maintaining this trend. Ki Young Ju explains that the realized cap metric, which records the price at which each Bitcoin last moved, can indicate whether holders are profiting or incurring losses. A growing market cap compared to the realized cap signifies investor confidence and ongoing bullish sentiment.
Potential Altcoin Surge on the Horizon
Ki Young Ju also predicts the onset of “altseason,” a period during which altcoins outperform Bitcoin. This phase could soon take off as traders rotate their capital from Bitcoin to altcoins in pursuit of higher returns. Although asset rotation hasn’t started yet, buy walls are reportedly getting stronger, indicating a potential surge in altcoin activity.
“Asset rotation from Bitcoin to altcoins hasn’t started, but buy walls are getting stronger overall. I like the calm before the storm.”
However, Ju expresses concerns about the altcoin market’s stagnation due to a lack of innovation within the crypto industry. He emphasizes the need for new developments to stimulate interest and energize the market.
“An industry that does not promote dopamine is destined to decline. The crypto industry we once knew is now failing to provide any dopamine to both builders and traders. That is why it is in crisis. A new game for traders must emerge. Only then can money flow into the market, and the industry can grow. The 2024 altcoin performance is dismal. Money is not flowing into the industry. If we do not create a new game to stimulate traders’ dopamine, the crypto industry we know will face a prolonged period of stagnation. I am genuinely concerned.”
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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
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