• Bitcoin (BTC) is still in a bull cycle according to crypto analytics platform CryptoQuant’s co-founder and CEO Ki Young Ju.
• Low selling pressure from long-term holders is indicating the current bullish sentiment, but it doesn’t guarantee a price increase.
• Market stability is expected to remain until more stablecoins are injected for buy-side liquidity.
Bitcoin Still in Bull Cycle Despite Correction
Bitcoin (BTC) is currently hovering nearly 10% below the 2023 high, however according to analytics platform CryptoQuant’s co-founder and CEO Ki Young Ju, the flagship crypto asset is still in a bull cycle due to low selling pressure from long-term holders. Approximately 71% of realized cap is unmoved BTC (greater than 6 months), indicating there is little selling pressure at the moment.
Price Rally Not Guaranteed
Ki Young Ju has warned that lower selling pressure does not necessarily guarantee an increase in price, but it does indicate that BTC may not be at its cyclic top just yet. He also noted that market stability will remain until more stablecoins are injected for buy-side liquidity.
Stablecoin Supply Low
Last month, Ki Young Ju stated that the level of stablecoin supply was low and that Tether (USDT) was increasing its dominance of the market by “eating” up other stablecoins. At present USDT holds a market cap of $83.8 billion while USD Coin (USDC) stands at $26.6 billion.
Buyers Using Stablecoins
Ju added that buyers are using stablecoins to purchase Bitcoin, which he considers a good thing as it shows people have faith in digital assets despite any dips or corrections in price. This trend should continue as more people invest or trade with cryptocurrencies on exchanges worldwide .
In conclusion, Bitcoin continues to be firmly entrenched in its bull cycle despite recent falls in price due to low selling pressure from long term holders being observed by analysts like Ki Young Ju of CryptoQuant . The market should stay relatively calm until more stablecoins are injected into it for increased buy side liquidity and as people become increasingly confident using digital currencies such as Bitcoin when trading on exchanges globally .