Ki Young Ju, founder and CEO of CryptoQuant, has detected a remarkable parallel between BTC whale accumulation in 2024 and that observed in the middle of 2020.
The findings presented by Ki in an X post on May 31 indicated a notable increase in on-chain activity and a substantial surge in Bitcoin accumulation. These results mirrored the accumulation phase of 2020, which precipitated a rise in BTC to $64,000 by April 2021.
“Same vibe on #Bitcoin as mid-2020. Back then $BTC hovered around $10k for 6 months with high on-chain activity, later revealed as OTC deals. Now, despite low price volatility, on-chain activity remains high, with $1B added daily to new whale wallets, likely custody.”
Whales of Bitcoin: High activity and minimal volatility
The “BTC: Realized Cap for New Whales” comparative chart by Ki demonstrates substantial inflows into BTC despite the relatively low levels of price volatility. Although the pattern suggests that whales may be accumulating Bitcoin and increased market interest ensued, community reactions to Ki’s findings were diverse.
One X user questioned whether Bitcoin’s “breakout is still several months away.” Others, however, voiced skepticism, observing that despite accumulation and ETF inflows, the price is not “going up.”
Bitcoin Accumulation Era 2020
For several months in 2020, the price of Bitcoin remained stable at around $10,000. Ki subsequently ascribed the surge in on-chain activity to over-the-counter (OTC) transactions during this period.
Due to this phase of accumulation and increased activity, the price of Bitcoin eventually peaked at approximately $29,000 by the end of 2020.
An analysis of Ki’s 2024 vs. 2020 chart reveals that the current market dynamics resemble those preceding a previous bull run, establishing a comparable historical parallel and generating optimistic anticipations.
Analysts in the cryptocurrency industry predict that the price of Bitcoin (BTC) will surpass its “last resistance” of $69,000 before reaching new all-time highs (ATHs), the highest level since the bull run of 2021.
In contrast to the ongoing daily accumulation of $1 billion BTC, which has prompted community speculation, a pseudonymous crypto analyst named CryptoCon recently characterized the current low volatility surrounding previous ATHs as “healthy price action.”
