Supply, Demand To Dictate Bitcoin Price, Demand For Cryptocurrencies High- CryptoQuant CEO

MOSCOW (UrduPoint News / Sputnik - 05th April, 2021) The price of bitcoin, the world's most popular cryptocurrency, will be determined by supply and demand and the demand for cryptocurrencies now is high enough "to get another leg up," Ki Young Ju, the CEO of CryptoQuant, a data platform for professional crypto traders, told Sputnik.

All eyes are on bitcoin, especially after Bobby Lee, the co-founder and former CEO of the BTCC crypto exchange platform, predicted that the world's highest-valued cryptocurrency could soar up to $300,000 by the end of 2021, followed by a drastic decline that could last for years.

"The price would be determined by supply and demand. For now, demand for cryptocurrencies is high enough to get another leg up. There are relatively many stablecoins across all exchanges thanks to the rise of USDC, and BTC [bitcoin] holdings are decreasing fast," Ki said.

In February, Ki predicted that bitcoin price will hit $50,000 'soon' on his Twitter account.

Currently, the Currency is trading at over $58,000.

Bitcoin will continue to soar unless investor sentiment is particularly dampened by the COVID-19 crisis, the CryptoQuant CEO said, adding that "it is all about market sentiment."

Due to the ongoing COVID-19 crisis, there was a great sell-off in March last year as all the markets collapsed, Ki said.

"At that time, the average amount of BTC deposits across all exchanges (24h MA) skyrocketed to 2 BTC, meaning whales deposited BTC to sell them, and the subsequent dumping happened," he explained.

When asked what if the bitcoin bubble bursts, Ki relied that this would never going to happen this year based on supply and demand indicators.

Bitcoin, a highly popular virtual web-based currency, has been on everyone's lips for a decade now since its introduction back in 2009. At its peak, its market capitalization exceeded $1 trillion, matching tech giants like Amazon, Google and microsoft.