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01 October, 2024

Bitcoin Bull Market Still Going Strong: CryptoQuant CEO Explains Why

01 October, 2024

Bitcoin’s Bullish Outlook Remains Strong Despite Recent Price Fluctuations

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While the Bitcoin rally that swept through mid-September has cooled down somewhat as we approach the end of the month, the cryptocurrency managed to close September with a green monthly candle. Despite dipping below the psychological $65,000 price mark and the fear and greed index shifting from greed to neutral, Bitcoin investors needn’t fret. CryptoQuant CEO Ki Young Ju firmly believes that Bitcoin is still in the midst of a bull cycle.

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This news will be music to the ears of Bitcoin enthusiasts as the crypto industry gears up for a historically bullish fourth quarter. Ki Young Ju, a vocal supporter of Bitcoin, stands firm in his bullish outlook despite the recent price volatility. His confidence isn’t based on mere speculation but is rooted in thorough technical price data and analysis.

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Ki Young Ju’s bullish stance is primarily driven by the Bitcoin growth rate difference, a metric that provides intriguing insights into the cryptocurrency’s bullish or bearish strength. This metric compares Bitcoin’s market cap to its realized cap. The market cap of a cryptocurrency is the total value of all coins in circulation, calculated by multiplying the current price by the total supply. The realized cap, on the other hand, considers the actual value paid for each Bitcoin in circulation based on the price at which each coin last moved.

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A higher market cap growth rate indicates that the spot price of the average coin has increased compared to its last movement. Ki Young Ju shared a Bitcoin technical chart on X (formerly Twitter) highlighting that Bitcoin’s market cap continues to grow faster than its realized cap, reinforcing his bullish outlook.

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Notably, Ki Young Ju previously mentioned in an analysis of the growth rate difference that this trend, which started in late 2023, typically lasts for an average of two years.

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What Does This Mean for Bitcoin’s Future?

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Based on historical bull cycle trends, which Ki Young Ju notes typically span about two years, Bitcoin is likely to remain in a bull cycle for at least another year. This bullish outlook is further supported by the strong fundamentals currently driving Bitcoin’s growth, as institutional investors continue to pour in capital.

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Speaking of institutional investors, Spot Bitcoin ETFs, which ended last week with the largest inflow ($494.27 million) since July 22, have started the new week on a positive note. They recorded $61.3 million in net inflows yesterday, a promising sign for Bitcoin’s future. Institutional involvement, particularly through vehicles like Spot Bitcoin ETFs, is a key factor in Bitcoin’s sustained price growth.

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At the time of writing, Bitcoin is trading at $64,080.