CryptoQuant analyst Ki-Young Ju says institutional investors will not let the Bitcoin (BTC) price drop below $20,000. Here is the reason why we will never see $20,000 in Bitcoin…
Bitcoin drops 50% while institutional investors are spending million dollars
According to CryptoQuant analyst Ki-Young Ju, Bitcoin’s fall below $20,000 “not possible”. According to Ju, institutional investors who bought the biggest cryptocurrency during the last bull market cycle spanning 2020 and 2021 will not let that happen. Coinbase Custody, the digital asset custody arm of the largest US cryptocurrency exchange, has increased the amount of assets under control by 296% since the fourth quarter of 2022, according to the analyst. It currently holds over 1.4 million Bitcoins on behalf of institutional clients.
Meanwhile, institutional adoption of Bitcoin is spurred by Galaxy Digital CEO Mike Novogratz as major insurance companies and asset managers have yet to join the party. still in the early stages.
BTC is trading above $32,000 again
Bitcoin finally got new investors on Tuesday after a record-breaking nine-week red candlestick series. The gradual rally is hovering above $32,000 for now. At the time of writing, the largest cryptocurrency by market capitalization is trading at over $32,000 on the Bitstamp exchange. At the same time, it has gained more than 10% since last week.
According to CryptoQuant analyst Ki-Young Ju, Bitcoin price may be on the verge of reaching the “cyclical bottom”. Ju, whose analysis we quoted as Kriptokoin.com, thinks that Bitcoin is currently in another important accumulation period and an uptrend will follow. Still, many investors are still hesitant, as on-chain analysis has repeatedly shown poor predictive ability.
What does Bitcoin’s pricing model say about short-term prospects
BTC seems to be heading for more bearish last week, especially when it threatened to drop below $28,000 on May 26 it seemed. On the other hand, slight upward momentum could be a bull trap, according to analysts. When it comes to supply dynamics, BTC’s supply on exchanges has dropped from 10.20% on May 25 to 10.10% on May 29. The supply held by the whales also increased from 46.75% to 47.32%.
Meanwhile, most addresses holding between 10,000 and 100,000 BTC seem to expect the price to drop further. Therefore, the short-term performance of Bitcoin still remains a mystery.
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