Bitcoin Bull Cycle Over? CryptoQuant CEO's Bearish Prediction
Bitcoin Bull Cycle Ends, According to CryptoQuant CEO
Ki Young Ju, CEO of CryptoQuant, a leading on-chain analytics firm, has issued a bearish prediction for Bitcoin, stating that the bull cycle has concluded. He anticipates a sideways or bearish market for the next 6 to 12 months.
Key Indicators Point to Bearish Trend
Ju's analysis relies on several key on-chain metrics: MVRV (Market Value to Realized Value), SOPR (Spent Output Profit Ratio), and NUPL (Net Unrealized Profit/Loss). Using a 365-day moving average, he observes a clear shift towards a bearish trend. His analysis also reveals diminishing new investment flows and a lack of sustained upward momentum despite high trading volumes near $100,000. Negative ETF inflows over the past three weeks further support this bearish outlook.
Ju's Perspective: Holding Bitcoin Despite Bearish Prediction
Despite his bearish prediction, Ju remains a Bitcoin holder, acknowledging the potential for long-term value. He notes that while his previous predictions have been criticized (such as a sell signal in 2020 which proved inaccurate), his current assessment is supported by robust on-chain data showing weakening buying power.
What this Means for Bitcoin Investors
Ju's prediction highlights the importance of careful analysis and risk management in the cryptocurrency market. While he sees a prolonged period of bearish or sideways movement, it's crucial to remember that market conditions are dynamic. Investors should carefully consider their own risk tolerance and investment strategies.
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