Wednesday, June 19, 2024
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CryptoQuant CEO Says One Metric Is Flashing Over 50% Crash for Bitcoin (BTC) Bulls

Ki Young Ju, the CEO of the leading on-chain analytics firm CryptoQuant, has recently stated that one metric is flashing a significant red flag for Bitcoin (BTC), the largest cryptocurrency by market capitalization.

According to Ki Young Ju in a series of tweets shared with his teeming followers on Twitter, historical data shows that Bitcoin could further crash to the $14,000 price level.

Read Also: Bitcoin, Ethereum Reach Extremely High Correlation with Stocks. What Does This Imply for Price?

Ki Young Ju tweeted, “So here’s hopium for bears. If BTC crashed so hard due to the macro crisis and all Bitcoiner institutions go underwater, it could go $14k based on historical MDD.”

At the time of filing this report, Bitcoin (BTC) is trading at 29,413, with a 0.23% price increase in the last 24 hours. Considering the current price of Bitcoin, the analyst’s bearish price target suggests a 52% downside risk.

According to Ki Young Ju, if prices fall into his worst-case scenario, the new Bitcoin investors will record the highest loss.

Captioning the screenshot of a chart, the analyst wrote, “Bitcoin maximum drawdown in worst-case scenario. Newbies down 67%. Experienced one bear cycle – down 39%. Experienced two bear cycles – profit guaranteed. Experienced three bear cycles – profit guaranteed. Today, newbies who joined last year are in -34% loss.”

Read Also: Analyst: Bitcoin Just Flashed a Signal That Has Historically Marked the Bottom of Previous Bear Markets

CryptoQuant CEO also provided the average entry price for each generation of Bitcoin investors since the emergence of the crypto asset by following the UTXO age bands metric which tracks the potential price level where long-term holders accumulated Bitcoin (BTC).

The analyst wrote, “OG’s Entry Price: 1st gen – $1.3 2nd gen – $653 3rd gen – $8,717 4th gen – $43,582 I’m the 3rd gen. Hang in there, 4th gen.”


Institutional Investors Dominate, Retail Investors Leaving

Moreover, Ki Young Ju recently observed that institutional investors now dominate the Bitcoin trading, as retail investors leave the crypto market in numbers.

“Retail investors are leaving the crypto market. Not bad for accumulating Bitcoin with institutions, but still worried about overall volume, which is significantly decreased compared to last year.”

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Tobi Loba
Tobi Loba
Tobi Loba is a passionate writer with a vast interest in the stock market. She joined the crypto ecosystem about three years ago and has written lots of ebooks and articles in relation to cryptocurrency and blockchain projects. Tobi Loba earned her degree at the University of Ibadan.

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