Bitcoin Rally Mirrors 2020 Bull Run, CryptoQuant CEO Suggests

Bitcoin’s ongoing surge toward the $100,000 mark is showing signs of mirroring the 2020 bull market, according to CryptoQuant CEO Ki Young Ju. In a recent thread on X (formerly Twitter), Ju pointed out the similarities between Bitcoin’s current price action and its explosive rise in 2020, when the cryptocurrency’s value surged by sixfold, reaching a high of $67,000.

Ju believes that the rally is supported by months of strategic accumulation by Bitcoin whales, whose actions have been reflected in on-chain data. Despite initial skepticism around the reliability of this data, Ju explained that the buildup in Bitcoin holdings among large investors is now clearer than ever. “Many criticized the data as exaggerated,” Ju admitted, but he noted that the current market behavior confirms that the accumulation was indeed real and deliberate.

The Role of Bitcoin Halving and Mining Costs

A significant factor driving the rally, according to Ju, is the increased cost of mining Bitcoin following the halving event in April 2024. The halving, which reduced the mining reward from 6.25 BTC to 3.125 BTC per block, has made mining less profitable, creating upward pressure on the price of Bitcoin. Ju emphasized that in order for mining to remain profitable, the price of Bitcoin “needs to go up.”

Short Squeeze and Continued Bullish Momentum

Ju also pointed to the growing number of traders betting against Bitcoin by shorting the asset. He suggested that this short interest could be contributing to the bullish market through a short squeeze, where the price rises sharply as short positions are forced to cover. However, Ju cautioned that while the market sentiment is overwhelmingly bullish, the exact timing of any further price surges remains uncertain.

Acknowledging Past Predictions

Reflecting on his previous remarks, Ju acknowledged that his earlier predictions did not hold up as expected. He had previously suggested that Bitcoin might experience a short-term correction in the middle of its bull run. “My predictions didn’t age well,” Ju said, but he reaffirmed his commitment to being transparent with the community if signs of a bear market were to emerge.

As of the latest data, Bitcoin is trading at approximately $97,444, a significant 160% increase since the start of 2024. The ongoing rally has many investors closely watching Bitcoin’s potential to breach the $100,000 threshold, with some experts suggesting that the price could continue to climb in the coming months, buoyed by factors like whale accumulation and rising mining costs.