Crypto CEO Issues Bitcoin Warning: No Bull Run for a Year

• CryptoQuant CEO Ki Young Ju predicts Bitcoin’s bull cycle has ended and expects a bearish trend for up to a year.
• On-chain indicators suggest Bitcoin will move sideways or downward as liquidity declines.
• Newly emerged Bitcoin whales are selling at lower prices, adding to market pressure.

Ki Young Ju, CEO of CryptoQuant, has issued a bearish outlook on Bitcoin’s (BTC) market performance for the next year. He believes the current Bitcoin cycle has ended, and traders should not expect significant bullish momentum. According to Ju, on-chain indicators suggest that Bitcoin is likely to move sideways or downward in the coming months.

CryptoQuant CEO Predicts Bearish Bitcoin Trend for Next Year

Ju presented the BTC Profit and Loss (PnL) Index cyclical signals in a chart showing weak indicators for bullishness. Several on-chain indicators show that the Bitcoin cycle currently reached its end according to his assessment. The economist predicts Bitcoin will stay either flat or decline in value for a minimum of six to twelve months.

Ordinary market capital also suffers from drying out and this condition makes it difficult for Bitcoin to achieve sustained upward price movement. Weak bullish momentum arises from Bitcoin whales who are recently establishing positions then sell them at less expensive prices according to Ju. The strong selling activity from investors might slow Bitcoin price movement downward or prevent it from increasing over the next period.

Ju used Principal Component Analysis (PCA) on MVRV SOPR and NUPL metrics to validate his examination. His analysis depended on a 365-day average to pick up shifting long-term price movements in Bitcoin. Though making this analysis Bitcoin analysts note that past users criticized him regarding his wrong sell indication from 2020.

Bloomberg Strategist Warns of Potential Bitcoin Crash

According to Mike McGlone who serves as a senior commodity strategist at Bloomberg Intelligence the Bitcoin market shows signs of declining in value. According to his predictions Bitcoin will decrease by one zero from $100,000 back to $10,000. McGlone linked Bitcoin market performance to the 2000s dot-com bubble which caused the Nasdaq 100 index to decrease by 80%.

According to his analysis Bitcoin might be undergoing such a speculative bubble that could reach an explosion point sometime during this year. Historical market trends serve as the basis of his analysis because they demonstrate how asset bubbles tend to destroy themselves after achieving their highest value levels. Bitcoin’s market value may plummet when such an event occurs thus extending an already bearish market period.

McGlone detected how Bitcoin follows the S&P 500 index movements in alignment. The U.S. stock market struggles present conditions under which Bitcoin could duplicate the falling trend of stocks. Bitcoin faces challenges in breaking free from its ongoing movement unless the stock markets achieve stability.

Gold Gains Popularity as Bitcoin ETFs Face Withdrawals

McGlone highlighted a growing trend where investors are shifting their focus from Bitcoin to gold. The gold ETF sector receives robust investment capital whereas Bitcoin exchange-traded funds witness substantial withdrawal of funds. The change between Bitcoin and gold highlights how institutional investors believe Bitcoin no longer holds sufficient long-term value potential.

The current shift of investors toward gold would allow gold to claim its leadership over Bitcoin by 2025 according to his observations. Economic instability has driven investors to choose gold because they view it as a safer asset. The price of Bitcoin might stay under downward pressure for an extended time because it struggles to gain new investor capital.

The current market trends suggest Bitcoin has finished its bullish cycle for the present time. Market analysts predict either a price stabilization period or weakening trend that shows no signs of recovery at present.