- Bitcoin has stabilized around $68K, but surging on-chain activity suggests a potential price surge.
- New whale wallets are seeing an influx of $1 billion daily, with $11.8B BTC accumulated in two weeks.
- This trend mirrors mid-2020, which preceded a significant Bitcoin price surge.
Bitcoin has settled around the $68K price level for the past few days after the earlier aggressive bull rally that surged the price to $71K. The premier crypto reawakened bullish optimism in the altcoin market, where tokens like PEPE smashed new all-time highs this week.
However, the market uptrend has lost steam as Bitcoin stabilizes at around $68,000. Market participants are now diving into on-chain data for clues into Bitcoin’s next direction.
In a recent post on X, Ki Young Ju, the founder of the analytics platform CryptoQuant, noted a remarkable resemblance between the current sentiment toward Bitcoin and what unfolded in mid-2020.
According to Young Ju, Bitcoin lingered near the $10,000 level during that period for half a year, accompanied by robust on-chain activity, later identified as Over-The-Counter (OTC) transactions. The on-chain activity under scrutiny involved the realized capitalization of new whale accounts.
The analyst observed that, even with muted price fluctuations, there is still significant on-chain activity, with new whale wallets seeing an influx of $1 billion daily, presumably being held in custody.
This observation is confirmed by CryptoQuant data showing that as of May 30, new whales hold a Bitcoin portfolio worth over $105.4 billion, while BTC traded at $68,300. Meanwhile, when Bitcoin traded at $61,400 on May 12, these new whales had BTC worth $93.6 billion. Essentially, new big-pocket investors have scooped up about $11.8 billion in Bitcoin in just under two weeks.
CryptoQuant data highlighted that while the current accumulation trend has been ongoing since 2022, it picked up steam in late 2023 amid the onset of the bull cycle. This trend similarly played around between late 2018 and 2020, which culminated in Bitcoin setting a cycle peak at $68K by November 2021. Essentially, the analyst sees a similar trend occurring, yet didn’t give a hint about Bitcoin’s potential value.
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