CryptoQuant analyst Ki-Young Ju believes that institutional investors will prevent Bitcoin from dropping below $20,000
CryptoQuant analyst Ki-Young Ju said predicted Bitcoin is “unlikely” to drop below $20,000.
For that to happen, institutional investors who gained exposure to the largest cryptocurrency during the previous bull market cycle, which spanned 2020 and 2021, would have to capitulate, according to Ju.
Ju pointed to the fact that Coinbase Custody, the digital asset custodial arm of the largest cryptocurrency exchange in the United States, has increased the number of assets under management by 296% since the fourth quarter of 2022. He Currently holds approximately 1.4 million Bitcoins on behalf of institutional clients.
In January, Galaxy Digital CEO Mike Novogratz opined that Bitcoin’s institutional adoption was only in its first inning since major insurance companies and asset managers were yet to join the party.
After nine straight weeks of record losses, Bitcoin finally saw some greed on Monday, with the community celebrating what was apparently a long-awaited relief rally.
However, the rally has already stalled. At press time, the cryptocurrency is trading at $31,576 on the Bitstamp exchange after dipping around 0.49%. Yet, the cryptocurrency is already up 6.93% this week, which means that it is likely to break its longest bearish streak to date unless another significant sell-off takes place by next Monday.
As U.Today reported, Ju was on the verge of hitting his “cyclical bottom” recently. He believes that the biggest cryptocurrency is currently in another major accumulation phase which will be followed by another rally.
Yet, many remain skeptical since on-chain analysis has repeatedly displayed its weak predictive power.
