The CEO of leading on-chain analytics firm CryptoQuant says a measurement raises a major red flag for Bitcoin (BTC) bulls.
“Bitcoin (BTC) is dominated by bears: Target is $14k”
Ki Young Ju, CEO of CryptoQuant, historical data to 292,600 Twitter followers He says that it shows that the . If BTC falls this hard due to the macro crisis and all Bitcoiner institutions are flooded, it could go to $14,000 depending on the historical maximum drop.
A move towards the analyst’s bearish price target indicates approximately 52% downside risk for BTC from its current price. According to the quantitative analyst, if market prices drop to the worst-case scenario, the latest Bitcoin investors will likely be in deep water. The analyst shares the following data:
Bitcoin maximum drop in worst case scenario. 67% down for novices. An experienced bear cycle – 39% decline. Experienced two bear cycles – guaranteed profit. Experienced quarterly bear cycle – guaranteed profit. Today, startups that joined last year are down -34%.
The analyst then traced the UTXO age bands metric, which tracks the potential price level at which long-term holders have accumulated BTC, each generation of Bitcoin over its 11 years of existence. It gives the average entry prices for the investor.
#Bitcoin OG's Entry Price:
1st gen – $1.3
2nd gen – $653
3rd gen – $8,717
4th gen – $43,582I'm the 3rd gen. Hang in there, 4th gen. pic.twitter.com/iWkEwFO4zV
— Ki Young Ju (@ki_young_ju) May 14, 2022
Kryptokoin.com As a result, institutional interest in BTC is growing. The analyst notes that he has recently observed that institutional investors are now the dominant force in Bitcoin trading:
Individual investors are leaving the crypto market. Not bad for institutions accumulating Bitcoin, but we’re still concerned about the overall volume, which has decreased significantly compared to last year.
“ETH ecosystem remained strong despite the drop in price”
The analyst then looks at the leading altcoin Ethereum (ETH). decentralized finance (DeFi) such as Uniswap, Dai-Chainlik; Non Fungible Tokens (NFT) such as CryptoPunk, Meebits BAYC; Maker highlights that the ETH ecosystem remains strong despite the huge drop in price, due to the strong interest in new blockchain niches such as decentralized autonomous organizations (DAO) like Curve, Dash, and play-to-earn gaming projects (GameFi) like Sandbox, Axie Infinity, Decentraland:
ETH price is down 56% from the top, but the number of active addresses is down just 7%. If we treat each address as a user, Ethereum has 551,705 DAUs (Daily Active Users) today. They don’t care about the ETH price but are getting into DeFi, NFT, DAO and GameFi projects.
