U.As we speak – (BTC) is at the moment experiencing a wave of euphoria, with 99.3% of unspent transaction output turning into earnings, in keeping with CryptoQuant information. This can be a traditionally vital second for cryptocurrencies, however as the thrill builds, the query arises: what occurs subsequent? Ki Younger Ju, founder and CEO of CryptoQuant, outlined two potential eventualities for the way forward for Bitcoin costs.

The primary situation means that Bitcoin could proceed its worth discovery section just like earlier cycles. On this situation, the worth of BTC will proceed to rise and new highs might be set within the coming months. This might final wherever from 3 to 12 months, which is how lengthy bull phases have usually lasted previously.

The second situation is extra cautious, with Zhu warning that the present rally may peak and proceed with a pointy decline just like the crash that occurred in November 2021.

Regardless of the opportunity of the second situation, analysts warn that attempting to quick Bitcoin now may very well be a dangerous transfer.

maintain with out promoting

This warning relies on his broader philosophy relating to Bitcoin. In a earlier publish, Ju emphasised that Bitcoin is an asset to carry, not promote. He believes Bitcoin is the strongest hedge towards greenback weak spot and a safer retailer of worth in comparison with fiat currencies.

In talking towards promoting Bitcoin, Ki Yong-joo recalled the worth discovery section in late 2020, when many merchants had been betting on Bitcoin by promoting it quick. This transfer backfired and the quick squeeze fueled the bull market. The analyst urged that historical past may repeat itself with comparable dangers, and urged supporters to not promote BTC and undertake a disciplined holding strategy.

This text was initially printed on U.As we speak