CryptoQuant’s CEO Ki Young Ju has reversed his earlier bearish stance on Bitcoin, attributing this change to strong institutional inflows via Bitcoin ETFs. Bitcoin has recently surpassed $100,000. Ju highlights the altered market landscape, emphasising the stability provided by institutional buyers while acknowledging the need for revised analytical approaches as traditional metrics begin to falter.
In a surprising turn of events, Ki Young Ju, CEO of CryptoQuant, has changed his stance on Bitcoin’s market trajectory. Initially, he believed that the recent bull run was over. However, the endurance of institutional investment via Bitcoin ETFs has prompted him to reassess the situation. Currently, Bitcoin’s price has topped the critical $100,000 mark, sitting at $103,608. Ju’s new perspective reflects significant shifts in market dynamics, largely driven by institutional players, overshadowing his former bearish outlook.
Ju’s earlier conclusion about the bull market’s end stemmed from traditional market structures. Historically, Bitcoin trading involved miners, whales, and retail investors, where the depletion of funds led to swift sell-offs by whales. This often resulted in retail investors losing out, much like a game of musical chairs. However, the entry of ETF issuers and institutional buyers like MicroStrategy has reconfigured this landscape. Ju pointed out that these new participants have developed a more stable capital framework by absorbing the selling pressure from whales.
Despite the evolving market, Ju remarked that indicators still rest at neutral, with no clear evidence supporting a long-lasting bull or bear trend. He noted that the traditional patterns of profit-taking have shifted, implying a necessity to reassess standard analytical models. The complexities of the current market dynamics indicate that previous assumptions might no longer hold true.
In terms of on-chain analysis, Ju commented on the diminishing predictive accuracy of longstanding metrics. He mentioned the Signal 365 MA model, previously effective in signalling market peaks and troughs based on deviations from the 365-day moving average. Unfortunately, it has had trouble aligning with today’s price movements. Acknowledging the need for advancements, Ju indicated that CryptoQuant is working on refining its analytical tools to adapt to these changing market conditions.
Nevertheless, Ju maintains that on-chain data retains its worth if interpreted correctly and in conjunction with evolving analysis. He also referred to other analysts, like Minolet, who have contributed alternative perspectives during this particularly volatile period.
ETF investments remain a central theme, as noted by Ju, pointing to significant inflows continuing unabated. Just recently, Bitcoin ETFs reported inflows of $117 million, slightly lower than the previous day’s $142 million, but importantly, no major ETF noted any outflows. This suggests a sustained confidence among institutional investors.
These trends resonate with the bullish forecasts of Muneeb Ali, founder of the Bitcoin Layer 2 platform Starks, who envisions a potential tenfold increase in Bitcoin to reach $1 million. He cites the historical price escalations from $100 to $1,000 in 2013, then to $10,000 in 2017, and to $100,000 anticipated by late 2024. Ali believes these past phases could repeat if the current environment continues to foster such momentum.
As a reminder, this article serves strictly for informational purposes and should not be taken as financial advice. The opinions expressed are those of the author alone and do not necessarily reflect the views of The Crypto Basic. Potential investors are advised to conduct thorough research before making any decisions in the volatile world of cryptocurrency, with caution advised given the risks involved.
