According to Ki Young Ju, CEO of CryptoQuant, The current Bitcoin market the dynamics suggest a growth phase that may last until April 2025.
Ju’s analysis comes in the context of BTC’s current uptrend, which appears to be a continuation of the trend seen in March, when BTC reached a recent all-time high, surpassing $73,000 for the first time.
Bitcoin’s market capitalization surge indicates a long-term upward trend, says CryptoQuant CEO
It is worth noting that Ki Young Ju’s forecast comes from an analysis of Bitcoin’s market capitalization growth, which exceeds realized capitalization – a measure of the market’s aggregate cost base.
This trend is a classic indicator of a sturdy bull cycle and is a reliable harbinger of continued upward momentum in previous market cycles.
Ju’s analysis highlights that the rapid boost in market capitalization compared to realized capitalization suggests increased investor confidence and market momentum.
In the past, this pattern has signaled extended phases of growth. If current trends continue, this cycle is expected to continue, leading to significant increases in Bitcoin’s value over the next year and a half.
#Bitcoin is in the middle of a bull cycle.
Its market capitalization is growing faster than its realized capitalization, and this trend usually lasts for about two years.
If this trend continues, the bull cycle could end by April 2025. pic.twitter.com/o4k8B1Rkhv
— Ki Young Ju (@ki_young_ju) May 17, 2024
Bitcoin has shown a positive trend, with an boost of 1.9% in the last 24 hours and over 12% in the last two weeks. As of this writing, it is priced at approximately $67,201.
Institutional adoption and market sentiment underpin the bullish outlook
The hopeful outlook for BTC is not based solely on historical trends and market capitalization analysis. Recent developments in institutional adoption provide further support for this positive trajectory.
Anthony Scaramucci, founder and managing partner of SkyBridge Capital and, most recently, a prominent Bitcoin supporter discussed on CNBC’s Squawk Box about how US pension funds are starting to invest in BTC.
“When you do your homework on Bitcoin, you gravitate toward Bitcoin… sometimes when you’re early, you experience some bumps and scratches, but I think it pays to get started early on Bitcoin, and we’re still in the early days of Bitcoin,” says Anthony from Scaramucci’s SkyBridge Capital. pic.twitter.com/HTfbwH5VJG
— Squawk Box (@SquawkCNBC) May 16, 2024
This is a move by institutional investors, such as the state The Wisconsin Investment Board’s investment in BTC is approximately $100 millionsignals broader acceptance and integration of BTC into classic financial wallets.
Scaramucci emphasized that institutional adoption of BTC is progressing rapidly and predicts that more pension funds will invest in Bitcoin. He emphasized that regulatory approvals have opened the door to large-scale institutional participation in BTC.
This endorsement will make Bitcoin a cornerstone of these institutions’ long-term asset allocation strategies. According to Scaramucci, understanding Bitcoin and the history of money is key to realizing its potential.
He noted: Getting into Bitcoin early is profitable and “we’re still in the early stages… sometimes when you’re early there are some bumps and scratches.”
Featured image created with DALL·E, chart from TradingView
