CryptoQuant CEO Updates Pessimistic Market Perspective, Claims Cycle Theory is Shifting Due to Institutional Investments
The CEO of CryptoQuant, Ki Young Ju, has updated his earlier assessment regarding the conclusion of the Bitcoin (BTC) bullish trend. He attributes this change to a transformation in market dynamics and notable inflows from exchange-traded funds (ETFs), which are effectively mitigating sell pressure.
In a post on May 9, Ju recognized that his prediction made in March was hasty. He pointed out that current market scenarios suggest that the theory surrounding Bitcoin cycles might be evolving from its traditional norms.
Emerging Influencers and Trends
Traditionally, Bitcoin’s price cycles were influenced by a limited group of participants, including early investors, miners, and retail consumers. These groups typically functioned in a boom-and-bust manner, where major holders would sell large quantities of Bitcoin during periods of declining retail interest, prompting cascading sales.
Ju compared this phenomenon to a “game of Musical Chairs,” where participants raced to exit simultaneously, leaving newcomers with depreciated assets.
With the entrance of institutional investors, strategic players, and even government entities, Ju posits that the market framework has transformed. These new participants generally have extended investment timelines and different objectives, such as diversifying reserves or adhering to regulatory fund requirements.
He believes this fresh demand base is efficiently absorbing sell pressure and reducing the volatility that historically characterized Bitcoin’s peak phases.
He stated:
“…It feels like it’s time to throw out that cycle theory.”
Gradual Yet Resilient
Even with the recent upward price trends, Ju described the current market stage as sluggish, noting that most on-chain indicators are still close to neutral. Although the market isn’t displaying the explosive growth seen in previous peaks, it also isn’t collapsing under profit-taking stress.
He attributes the consistent inflows from ETFs as a crucial element stabilizing prices, enabling Bitcoin to absorb existing supply without triggering the usual cycle of frantic selling. This indicates a developing market structure, where capital shifts occur more smoothly and less destructively.
A long-term chart shared by Ju indicates that Bitcoin’s profit-taking signal is flattening when compared to earlier peaks, demonstrating a slower and more stable adjustment instead of a sharp downturn.
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