Bitcoin's Current State

Bitcoin (BTC) is currently experiencing a wave of euphoria, with 99.3% of unspent transaction outputs in profit, according to data from CryptoQuant. This moment is historically significant for cryptocurrency. However, as excitement builds, questions arise about future price movements.

Potential Scenarios for Bitcoin Pricing

Ki Young Ju, founder and CEO of CryptoQuant, outlines two potential scenarios for Bitcoin's future:

1. Continued Price Discovery: In this optimistic scenario, Bitcoin could continue its price discovery phase, leading to new highs within the next 3 to 12 months, mirroring past bullish cycles.
2. Cautious Outlook: Conversely, Ju warns that the current rally may represent a peak, potentially followed by a significant drop, reminiscent of the November 2021 crash.

Despite these cautious sentiments, Ju cautions against shorting Bitcoin at this time, highlighting the inherent risks involved.

Philosophy on Holding Bitcoin

Ju's caution is rooted in his belief that Bitcoin is an asset to be held rather than sold. He argues that it serves as a robust hedge against dollar devaluation, positioning it as a safer store of value compared to fiat currencies.

He references the late 2020 price discovery phase when many traders unsuccessfully shorted Bitcoin, leading to a short squeeze that fueled a bull run. Ju advises his followers not to sell BTC and to maintain a disciplined holding approach, suggesting that history may be repeating itself with similar risks ahead.

This article was originally published on U.Today