CryptoQuant CEO Says Bitcoin Price Could Fall to 47K
Ki Young Ju, CEO of the CryptoQuant portal, made this prediction.
In the last few hours, the prices of the major cryptocurrencies seem to be stabilizing after last Friday’s dramatic fall. However, some experts believe that the storm is not over and that the price of bitcoin could fall to $47,000 per coin. This prediction comes from the CEO of the CryptoQuant portal, Ki Young Ju.
Ju believes that this possible decline is no cause for alarm, as the bull market is not in doubt. In this regard, he claims that the bull run will extend into the early months of 2025. In a post on social network X, Ju comments that his bullish view remains unchanged despite the fact that the pullback has not ended in the short term.
“I think bitcoin’s bullish cycle will continue until early next year,” Ju comments. He also suggests that this is an ideal time to use the Dollar Cost Average (DCA) strategy in spot trading. This strategy consists of buying constant quantities at regular intervals (weekly, bi-weekly, etc.) regardless of the price.
In general, the results of this strategy tend to be remarkably positive over the long term. Unlike futures strategies, DCA involves less risk of loss.
Ju warns about making major investment decisions by pointing out that his tweets “are from a spot trading and long-term cycle perspective. Warnings about corrections are mentions of risk. Always DYOR.”
Bitcoin Price Should Not Depend on How Much the Government Wants to Sell
In a separate post on X, Ju emphasizes that the price of bitcoin should not be affected by government wallet movements. A recent paper assesses the potential threat of governments to the stability of the cryptocurrency market. The study concludes that owning more than $18 billion in BTC gives governments the power to manipulate prices and cause a bear market whenever they want.
According to this report, the U.S. government holds about $12 billion in cryptocurrencies, mostly in BTC. Most of these U.S. government reserves come from massive seizures in cases of fraud, crime, and hacking. Basically, the U.S. government has more funds in BTC than all of Mt. Gox’s reserves scheduled for redemption.
Highlighting the same list is the UK government, which holds $3.455 billion in cryptocurrencies, all in bitcoin. In third place is the government of Germany, with $2.286 billion in crypto, all of it in bitcoin. It is worth noting that for several weeks now, the German authorities have been sending large amounts of coins to exchanges.
It compares this bearish power to the $9 billion in Mt. Gox redemptions that caused panic among investors. With twice as much money, governments have the potential to do a lot of damage. A clear example is the German government sending thousands of coins to exchanges.
While these elements are troubling at first glance, Ju believes that the capacity of governments is overstated. He explains that since 2023, approximately $224 billion has flowed into the crypto market. Meanwhile, the amount of BTC held by governments, according to CryptoQuant data, is $9 billion (according to Arkham, it’s more than $18 billion).
In any case, according to Ju, government holdings account for only 4% of the total BTC capital since 2023. With that in mind, he argues that the impact of these whales is overstated. “Don’t let government FUD sales ruin your business,” he warns.
In short, although the price of bitcoin could go down a bit more, the bull market is not in any danger, according to the expert.
By Audy Castaneda