CryptoQuant CEO Ki Young Ju is revising his outlook on Bitcoin (BTC), admitting he was wrong to predict the end of the bull market after BTC dipped below $80,000 a couple of months ago. He now sees a significant shift in the market.
From Simple to Complex: The Evolution of Bitcoin Trading
Ju explains that the Bitcoin market used to be simpler, dominated by a few key players: long-time holders (“whales”), miners, and retail investors. These groups essentially passed Bitcoin back and forth, creating predictable cycles. When retail investors pulled out and whales started selling, a crash was almost guaranteed. He likens it to musical chairs – everyone scrambling to get out before the music stops.
However, the market has diversified dramatically. The emergence of Bitcoin ETFs, institutional investors like MicroStrategy, and even government interest has completely changed the game.
New Players, New Rules: ETFs and Institutional Investment
Ju argues that this influx of new players from traditional finance (TradFi) is disrupting the old patterns. The traditional “whale-driven” sell-offs are less significant now because the sheer volume of new money flowing into Bitcoin from institutions and ETFs can easily offset them. Instead of focusing on whale activity, the focus should be on this new institutional liquidity.
A Bullish Outlook?
With Bitcoin trading around $103,346 at the time of writing, Ju’s shift to a more bullish stance is noteworthy. He suggests that the old cycle theories may no longer apply, emphasizing the importance of the growing institutional investment in Bitcoin. The massive inflows are easing the selling pressure, creating a more uncertain, but potentially positive, outlook for the future of Bitcoin.
Disclaimer: This information is for general knowledge and shouldn’t be considered investment advice. Always do your own research before making any investment decisions.
/p>