CryptoQuant analyst Ki-Young Ju says it is “unlikely” for the Bitcoin price to drop below the $20,000 level. guesses.
According to Ju, for such a drop to occur, institutional investors investing in the largest cryptocurrency during the bull market cycle spanning 2020 and 2021 will have to surrender.
Ju pointed out that Coinbase Custody, the digital asset custody arm of the largest cryptocurrency exchange in the US, has increased the number of assets managed by 296% since the fourth quarter of 2022. It currently holds about 1.4 million Bitcoins on behalf of institutional clients.
Ju’s thoughts are in line with an earlier statement by Galaxy Digital CEO Mike Novogratz. Novogratz noted in January that Bitcoin is only in its early stages of institutional adoption, as major insurance companies and asset managers have not yet joined the space.
On the other hand, after a record nine consecutive weeks of losses, Bitcoin finally saw some gains on Monday and the crypto community celebrated a seemingly belated relief rally.
However, the rally seems to have stalled for now. At press time, the cryptocurrency is trading at around $31,613. Still, it should be taken into account that the leading crypto has increased by 8.25% in a week. This weekly rally means it will break the longest ever bearish streak unless another major sell-off occurs by next Monday.
Finally, Ju stated that Bitcoin is about to reach its “cyclical bottom” recently. Ju believes the biggest cryptocurrency is currently in a major accumulation phase where another rally will occur.
Still, many remain skeptical, as on-chain analysis repeatedly shows poor predictive power.
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Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, KoinFinans and the author of this content cannot be held responsible for personal investment decisions.