99% of Bitcoin in Profit: Euphoria or Trap? Top Analyst Answers

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As a seasoned analyst with over two decades of experience in the financial markets, I’ve seen countless bull and bear cycles, from the dot-com bubble to the 2008 financial crisis. In light of the current Bitcoin (BTC) euphoria, my personal take is that we are at an important juncture for cryptocurrency.

Currently, Bitcoin (BTC) is witnessing a surge of optimism, as approximately 99.3% of its unused transaction outputs are in profit. This data comes from CryptoQuant and marks an important milestone in cryptocurrency history. However, as enthusiasm escalates, the question arises: what lies ahead? Ki Young Ju, founder and CEO of CryptoQuant, has proposed two potential future trajectories for Bitcoin’s price.

The initial situation hints at Bitcoin potentially extending its price growth trend, similar to previous market cycles. If this happens, we might witness Bitcoin’s value increasing further and reaching new record highs within the next few months. This uptrend could persist for anywhere between 3 to 12 months, which is roughly the duration of past bullish stages.

In the second situation, Ju advises a more conservative approach because he thinks the present uptrend might be reaching its zenith, potentially leading to a significant decline, much like the one that happened in November 2021.

#The excitement surrounding Bitcoin is palpable now.

— Ki Young Ju (@ki_young_ju) November 19, 2024

Even though it’s possible that the second situation may occur, the analyst advises that selling Bitcoin at this point might involve significant risks.

Hold, not sell

This caution is based on his broader philosophy on Bitcoin. In previous posts, Ju has emphasized that Bitcoin is an asset to be held, not sold. He believes that Bitcoin is the strongest hedge against dollar devaluation, making it a safer store of value compared to fiat currencies.

In a stance against Bitcoin sales, Ki Young Ju brings up the period at the end of 2020 when numerous traders placed bets against Bitcoin by shorting it. However, this move led to a ‘short squeeze’, which in turn sparked a prolonged increase in the price of Bitcoin. Implying that we might see a similar scenario again with potential risks looming, the analyst advised his audience not to sell their Bitcoin and instead adopt a patient, long-term holding strategy.

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2024-11-19 18:12