CryptoQuant Founder and CEO Ki Young Ju has reversed his previous bearish prediction following Bitcoin’s impressive breakout above $100,000. This unexpected movement has caught many in the cryptocurrency market off guard, especially after several months of bearish sentiment. As the market atmosphere shifts back towards optimism, Young has elaborated on his revised stance and the current market dynamics.
Bitcoin Bull Cycle Is Not Over
In a recent post on X, Ki Young Ju outlined how today’s market has diverged markedly from previous cycles. Notably, he observed that the market is no longer predominantly influenced by traditional Bitcoin whales, retail investors, and miners. Previously, cycle peaks were signaled when these older market players began liquidating their holdings. However, the Bitcoin market has evolved, now demonstrating resilience to substantial sell-offs.
This newfound robustness can be attributed, in part, to the diversification within the market landscape. The introduction of Spot Bitcoin ETFs, approved by the Securities and Exchange Commission in 2024, has facilitated a surge in liquidity. The market is now occupied not only by retail investors but also by institutional investors wielding considerably more capital.
This influx of institutional liquidity has substantially altered Bitcoin’s response to significant sell-offs from large stakeholders. Young argues that it is imperative to shift focus from the aging players of yesterday to the robust new entrants transforming the market.
In light of these shifting currents, Ki Young Ju proposes that it may be time to re-evaluate traditional cycle theories. He points out that as liquidity sources have become more unpredictable, the focus should be on the magnitude of new liquidity pouring in from institutional players and ETFs. “The new influx of capital can outweigh even the most significant sell-offs from traditional whale investors,” he stated.
However, despite the bullish undercurrents, Young noted that the market is not currently exhibiting a clear bearish or bullish profit-taking signal. He cautioned that the market remains sluggish in absorbing the disparate new liquidity sources, leading to indicators hovering around a precarious balance.
Currently, Bitcoin’s price continues to showcase strength after surpassing the $100,000 mark, with bulls now targeting new all-time highs above $109,000. Notably, data indicates that an impressive 99% of all Bitcoin holders are currently in profit, as reported by IntoTheBlock.
