CryptoQuant CEO Proposes Dismissing 'Cycle Theory'

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Ki Young Ju, the founder and CEO of CryptoQuant, has revised his earlier pessimistic outlook after Bitcoin surpassed the $100,000 mark. This unexpected surge has caught many off guard, especially after a period of negative market sentiment. With positivity returning, Young has adopted an optimistic view, elaborating on his new perspective and the current market dynamics.

The Bitcoin Bull Cycle Continues

In a post on X, CEO Ki Young Ju discussed the unique characteristics of the present market, noting a departure from past cycles. He mentioned that it no longer heavily depends on traditional Bitcoin holders, individual investors, and miners to influence market movements. Previously, the market peaked when older investors began disposing of their assets, but now it seems capable of withstanding significant sell-offs without major repercussions.

Young attributes this shift primarily to the increased diversity of the market. The introduction of Spot Bitcoin ETFs, authorized by the Securities and Exchange Commission (SEC) in 2024, has created new opportunities for liquidity. The market now features not just retail investors but also institutional players who are entering with substantial capital.

This influx of liquidity has led to a scenario where even significant sell-offs from large investors no longer exert the same downward pressure on Bitcoin’s price. Consequently, the CEO suggests it’s essential to pivot focus from older investor patterns to the emerging dynamics of larger liquidity sources.

Source: X

Given these market changes, the CryptoQuant CEO suggested that the traditional cycle theory may need to be reconsidered. This stems from evolving liquidity flows, making previous indicators less reliable. “Rather than being concerned about older investors liquidating their holdings, it’s crucial to monitor the influx of new capital from institutions and ETFs, as this new liquidity can easily counteract heavy sell-offs from large investors,” Young remarked.

Nonetheless, he pointed out that the present market does not indicate a definitive bearish or bullish trend in terms of profit-taking. He clarified that the market is still grappling with the influx of new liquidity from various channels, with indicators remaining uncertain.

Regarding Bitcoin’s current price, it remains robust after surpassing the $100,000 threshold, as bullish investors set their sights on breaking previous highs above $109,000. Additionally, investor profitability has soared, with an astonishing 99% of Bitcoin holders currently enjoying profits, based on data from IntoTheBlock.

BTC bulls establish themselves above $100,000 | Source: BTCUSD on TradingView

Featured image from Dall.E, chart from TradingView