CryptoQuant Founder on Bitcoin Exchange: Price Drop Rotation?

Recently observed price drops in Bitcoin (BTC) have created uncertainty for many investors; however, CryptoQuant founder Ki Young Ju emphasizes that this situation reflects a rotation among long-term investors rather than panic.

During this process of reshaping investor interest, Ju noted that older investors holding Bitcoin have been selling, indicating that this is related to a structural change. Ki Young Ju also mentioned that new traditional financial players are present against this selling, and that the real change is driven by this new flow of capital.

Recalling his accurate predictions regarding the price peak at the beginning of the year, Ju stated that significant amounts have been sold by older investors, commonly known as OG whales. Nevertheless, he reported that continuous new capital is being injected into the market through ETF inflows, MSTR purchases, and other institutional channels. Thus, on-chain entries continue to remain strong, and he particularly emphasized that the primary reason for the decline is the pressure created by the former Bitcoin holders.

Ju highlighted that the most critical factor in today’s Bitcoin market is institutional liquidity flow, with an increasingly substantial capital influx through structures like state funds, pension funds, and multi-asset investment funds. He indicated that as long as this trend continues, the validity of traditional cycle theory will diminish, and he compared the current situation to a market structure that is very different from before. According to him, as the current liquidity channels expand, a peak or sharp crash similar to previous cycles in the Bitcoin market is not expected.

Ju stated that the Bitcoin cycle theory is becoming more difficult to apply in this new environment, as new capital flows have distinctly changed the price dynamics. Thus, the most important factor for investors to pay attention to is the long-term demand generated by institutional investors.