Key Notes
- Bitcoin whales buying the coin is not a bubble, CryptoQuant Founder says.
- Despite whale buyups, market swing remains visible.
- Ki Young Ju predicts the market top is far from the current level.
CryptoQuant CEO Ki Young Ju shared his perspective on the current dynamics in the Bitcoin
BTC
$95 971
24h volatility:
2.6%
Market cap:
$1.90 T
Vol. 24h:
$45.19 B
market. Young Ju’s analysis specifically focused on whale BTC accumulation and the impact of price movements.
Changing Narrative of Bitcoin Whales
In an X post, Young Ju emphasized a shifting narrative from large Bitcoin investors, often called whales. According to the CEO, news of whale accumulation has become a common routine that no longer surprises anyone. He noted that the current dynamics show deviation from two or three years ago, when news of Bitcoin whale accumulation used to shake the market.
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 CryptoQuant CEO attributed the shifting narrative to retail investors withdrawing from Bitcoin, allowing whales to dominate the market. Young Ju emphasized that many market participants have recognized the shifting whale narrative, but there have been few in-depth discussions.
Importantly, Young Ju stated that this is not a bubble while we are in a bull market. He defined a bubble as when the market price greatly surpasses capital inflows, as assessed on-chain. Currently, on-chain data shows that $7 billion in weekly money is entering the Bitcoin market, which supports current price levels.
He argued that corrections could happen for Bitcoin amid the current bull cycle. He predicted that a potential drop would not exceed 30%, and any such dip would likely be short-lived.
Additionally, forecasted a substantial rebound following the downturn, with prices potentially rising by over 30%. He also expressed confidence that the peak of this Bitcoin cycle is still a long way off. Finally, Young Ju refuted predictions of an impending bear market, criticizing people who overlook on-chain data.
What Bitcoin MVRV Shows
The analyst accompanied his post with a “BTC: True MVRV chart.” Essentially, the Market Value to Realized Value metric measures how overvalued or undervalued a cryptocurrency is relative to its historical transaction data. The MVRV metric offers insight into market sentiment and potential price movements.
An MVRV ratio above 4 usually indicates that Bitcoin’s market price is far higher than its realized value. Historically, these zones have coincided with market tops, followed by sharp price declines.
On the contrary, an MVRV ratio below 1 indicates that Bitcoin’s market price is undervalued relative to its realized value. These periods, aligning with market bottoms, are usually the best times to buy Bitcoin.
Furthermore, neutral areas exist where the market price aligns more closely with realized value. The periods reflect balanced conditions, where the market is neither overvalued nor undervalued.
Notably, the chart posted by Young Ju shows the MVRV ratio at approximately 1.8. While the figure is above the mid-range but still in the “Strong Sell” territory. Interpreting this means while Bitcoin is rising, the coin is not dangerously overvalued.
Meanwhile, Bitcoin price has corrected by over 15%, since hitting its all-time high of $108,000 last week. As of press time, the Bitcoin price is down 3% in the last 24 hours to trade at $95,202.
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Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
