The head of blockchain analytics platform CryptoQuant believes Bitcoin (BTC) is in the middle of a bullish cycle despite the drop earlier in the week.
Ki Young Ju told his 346,000 followers on social media platform I'll tell you.
If this pattern repeats, the current bull market could last until around April 2025, according to Ju.
The realized cap metric records the price at which each Bitcoin last moved and aims to measure how many holders are making profits or losing money.
“Sorry, bears, but Bitcoin is still in the middle of a bullish cycle. If the market cap increases faster than the realized cap, it could be a sign of a bull market. If the opposite is the case, it’s bearish. This is likely due to an increase in forex trading by the bulls and an increase in on-chain OTC (over-the-counter) activity by the bears.
At the time of writing, Bitcoin was trading at $63,608, down 3.3% in the past 24 hours.
The analyst also said that an “alt season” could soon begin, where altcoins outperform Bitcoin. As the phase approaches, traders tend to rotate capital from Bitcoin to altcoins in search of greater profits.
“The asset rotation from Bitcoin to altcoins has not yet started, but overall the buying barrier is getting stronger. I like the calm before the storm.”
However, Zhu recently warned that the altcoin market could remain flat due to the lack of innovation in cryptocurrencies.
“Industries that don't promote dopamine are doomed to decline. The cryptocurrency industry as we once knew it is now unable to provide dopamine to both builders and traders. That's why it's in crisis. A new game for traders must emerge.
Only then can money flow into the market and the industry grow. Altcoin performance in 2024 is disastrous. Money isn't flowing into the industry. If we don't develop new games that stimulate traders' dopamine, the cryptocurrency industry as we know it will face a long period of stagnation. I'm really worried. ”
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