Large institutional investors appear to be placing themselves in Bitcoin strategically, following a pattern seen prior to the historic bull rise that is expected to occur towards the end of 2020, according to many signs.
The CEO of CryptoQuant, Ki Young Ju, highlighted the striking parallels between the movements seen prior to the sharp increase in prices at the end of 2020 and the recent activity on the Bitcoin network in a tweet on May 31.
Despite the present low volatility, data shows that over $1 billion is transferred to whale wallets every day.
This frantic rate of accumulation is similar to the six months in the middle of 2020 that Bitcoin spent hovering about $10,000 before starting its incredible ascent to the all-time high of $64,000 in April 2021.
This frantic activity shows that huge institutional investors are setting themselves up for a fresh bull cycle, according to Ki Young Ju.
A significant bullish recovery's historical forerunner?
Concerning parallels between the behaviour of the market today and 2020 may be seen in CryptoQuant's comparison chart. This match feeds the rumours that the long-term upward trend of Bitcoin is about to resume.
A few analysts voice their concerns, debating the distinction between price stagnation and enormous accumulation. Nonetheless, some predict the start of the next significant bullish rise. A significant inflow of institutional funds into "whale" wallets typically indicates that the queen of cryptos is doing well.
In summary, experts predict that Bitcoin will surpass the crucial resistance level of $69,000 and set new all-time highs. With this wave of significant investors piling in, reminiscent to the start of the 2020–2021 rise, it appears that Bitcoin is getting ready for another big push. The primary cryptocurrency may witness a recurrence of history.