- The US Bitcoin (BTC) market is poised to significantly influence the upcoming trends in the crypto space, according to CryptoQuant CEO Ki Young Ju.
- Young Ju asserts that the US market’s impact is surpassing that of offshore global markets, setting the stage for the next big movement in crypto prices.
- “Coinbase’s dominance in global BTC-USD spot markets at 46% showcases its growing influence,” Young Ju mentions, highlighting the role of institutional brokerage services in this rise.
CryptoQuant CEO Ki Young Ju believes the future of Bitcoin prices is heavily influenced by the US market, with Coinbase playing a significant role. Learn about the dynamics at play and what this means for investors.
The Role of the US Market in Bitcoin’s Immediate Future
The CEO of CryptoQuant, Ki Young Ju, underscores the critical role of the US Bitcoin market in driving future crypto price movements. He mentions that the US market is currently more pivotal than offshore global markets in determining the next upward trend for Bitcoin. According to him, while stablecoins serve as liquidity in offshore markets, their impact is waning in comparison to Bitcoin and Ethereum market caps.
Coinbase’s Dominance and Institutional Influence
Coinbase holds nearly half of the market share in global BTC-USD spot markets, largely due to the rising influence of institutional brokerage services. This showcases the increasing institutional interest and participation in Bitcoin trading within the US. On the other hand, the South Korean won (KRW) maintains high trading volumes largely in altcoins, with 82% of Upbit’s total volume coming from these digital assets.
Insights into Bitcoin’s Market and Thermo Cap Ratio
Bitcoin is currently trading at around $68,312, experiencing a slight dip of approximately 4% over the past week. Despite this, Young Ju recently pointed out that Bitcoin isn’t overvalued when assessed through network fundamentals, emphasizing the significance of BTC’s “thermo cap ratio.” This ratio, calculated by dividing Bitcoin’s market capitalization by its thermo cap, provides insights into the total investment cost within the Bitcoin network. It signifies that Bitcoin’s market valuation is grounded in its underlying investment fundamentals.
Thermo Cap: A Key Indicator
Thermo cap reflects the cumulative investment in mining Bitcoin by accounting for the creation cost of each mined coin. The ratio offers a valuable perspective on how Bitcoin’s market value correlates with its mining cost, providing investors a tool to gauge the network’s intrinsic value. Young Ju’s analysis implies that despite recent price movements, Bitcoin’s market position remains fundamentally strong.
Conclusion
In summary, the US Bitcoin market, spearheaded by institutional activities on platforms like Coinbase, is expected to steer the next significant price movements of Bitcoin. While offshore markets and stablecoins play a role, their impact is lessening relative to major cryptocurrencies like Bitcoin and Ethereum. Investors should keep an eye on key metrics such as the thermo cap ratio to better understand the market’s intrinsic value and long-term potential. This underscores the nuanced dynamics at play within the crypto markets and the importance of informed investment strategies.
