CryptoQuant CEO Predicts Major TradFi Institutions Will Soon Announce Bitcoin Acquisitions

CryptoQuant's CEO, Ki Young Ju, suggests that significant changes are underway in the Bitcoin market as permanent holder addresses continue to accumulate BTC. He noted that 404,448 Bitcoin have transitioned to these addresses in just the past month, signaling a strong accumulation trend.

Ju believes that within the next year, various entities, including TradFi institutions, corporations, and governments, will publicly announce their Bitcoin acquisitions by Q3 2024. He warns that retail investors may regret not investing sooner due to concerns over macroeconomic factors, including potential sell-offs by the German government or the Mt. Gox situation.

Key On-Chain Factors Supporting BTC

1. Hashrate Recovery: The mining sector is stabilizing, with the hashrate approaching all-time highs. Current mining costs in the U.S. hover around $43,000 per BTC, which should keep the hashrate stable unless prices drop significantly.
2. Whale Accumulation: There has been a notable increase in BTC inflows into custody wallets, with 404,000 BTC moving to permanent holder addresses, including 40,000 BTC in U.S. spot ETFs over the last month.
3. Retail Absence: Currently, retail investors are largely absent from the market, reminiscent of the conditions seen in mid-2020.
4. Reduced Old Whale Activity: Old whales, holding BTC for over three years, have sold their assets, transferring them to new whales, which has alleviated selling pressure.

Despite the bullish indicators, Ju cautions about potential macroeconomic risks that could trigger sell-offs. Recent trends include significant crypto deposits from Jump Trading and Binance reaching year-to-date highs in daily deposits. Some on-chain metrics have also turned bearish, which could hinder market recovery if they persist longer than two weeks.