Key Points
- Bitcoin’s current rally is backed by accumulation by whales, according to CryptoQuant CEO Ki Young Ju.
- Bitcoin’s price needs to increase to maintain mining profitability after the halving in April.
Ki Young Ju, CEO of CryptoQuant, has suggested that Bitcoin’s ongoing rally is supported by months of accumulation by whales.
This rally towards the $100,000 mark is similar to the price surge seen in 2020, when the value of Bitcoin increased sixfold to hit $67,000.
Whale Accumulation and Mining Costs
Ju highlighted that previous on-chain data indicating Bitcoin accumulation by whales over several months has been accurate. Despite initial scepticism about the data’s validity, the reason for the accumulation is now becoming apparent.
The CEO of CryptoQuant also mentioned the doubling of crypto mining costs after the halving in April, which cut mining rewards from 6.25 BTC to 3.125 BTC. He emphasized that the price of Bitcoin needs to rise to ensure mining remains profitable.
Market Predictions
On the topic of potential further price increases, Ju suggested that many traders are shorting, which is driving the bull market with a short squeeze. However, the precise timing of any price explosion is still uncertain.
Looking back at previous statements about Bitcoin’s price peak, Ju conceded that his predictions did not age well when he previously anticipated a short-term correction in the middle of the bull market. Despite this, he maintained his commitment to voice his opinion if a bear market appears to be imminent. As of the latest update, Bitcoin is trading at $97,444, marking a 160% increase since the beginning of the year.