The Bitcoin market cycles display several unusual asymmetries. At the end of a bull market, investors tend to get overly optimistic, leading to a temporary parabolic price surge. When a bull market is nearing its end, rapid price growth poses a risk of bursting the speculative bubble, and it can be seen that the participants become greedy.
According to Cryptoquant CEO Ki Young Joo, the next bitcoin parabolic bull run could be triggered by the transfer of USDC held on exchanges by TradeFi institutions.
In his recent analysis, Ki Young Joo points to a new factor to identify the next Bitcoin (BTC) parabolic bull market. read on!
Young Ju’s 4 Signs:
The expert tweeted that the bull run may begin if large amounts of the dollar-pegged stablecoin USD Coin (USDC) shall flood into the exchanges.
- Xu cited data showing that 94% of USDC currently in circulation cannot be bought or sold on exchanges. Mainstream financial organizations, such as BlackRock, Fidelity and Goldman Sachs, hold the vast majority of this supply.
- The off-exchange tokens will be issued in the market when the clients of these institutions place orders for the USDC to be deployed, Ju added, possibly igniting the bull rally.
- Later, he elaborated that unlike USDC, favored by institutional investors, “crypto-native stablecoins” such as BUSD and USDT are coming to the exchange.
- Despite the bear market, there has been a significant increase in the amount of Binance USD (BUSD) available on the exchanges. Currently, 70% of the available supply can be found on exchanges. This could be a sign that crypto locals are starting to save some money. At the same time, Tether[यूएसडीटी]25% of the supply is listed on the exchanges.
The On-Chain Activity: What Does It Indicate?
To wait out the market dip, investors have been stockpiling Bitcoin, according to the company’s CEO, who also observed that older Bitcoins now make up 74% of the total market cap.
Another on-chain statistic that indicates high investor confidence is the hash rate of bitcoin. According to data from YCharts, the bitcoin hash rate—a measure of the amount of computer power devoted to securing the network—has increased by nearly 90% in the past year.
The Bottom Line
In any case, the two phases of the market cycle share a fundamental trait: identifying their respective apexes and minima is limited to retrospect. Since most investors expect either greater increases or falls when prices are at their extremes, they never appear clear when they are first forming.
