Bitcoin’s price has surged to $104.9K due to increasing institutional demand and ETF inflows. Analyst Ki Young Ju, who had previously been bearish, has updated his perspective, indicating a fundamental shift in Bitcoin’s market structure. He now observes a more diverse participant landscape that could impact market dynamics significantly, while also cautioning about the short-term outlook as liquidity absorption continues.
In a notable turn of events, Bitcoin has surged to an impressive $104.9K, spurred on by significant institutional demand and recent ETF inflows. Market dynamics appear to be shifting dramatically, a move highlighted by top crypto analyst Ki Young Ju, who has changed his stance on Bitcoin’s future. Ju, the founder of Cryptoquant, previously held a bearish view but now acknowledges that institutional inflows are reshaping Bitcoin’s market narrative.
On May 9, Ju shared on social media that he had been mistaken in his prior predictions. “Two months ago, I said the bull cycle was over, but I was wrong,” he stated. The influx of capital from institutional sources is easing the selling pressure on Bitcoin, allowing the digital asset to find its footing. He believes this change signifies a fundamental transition within the market.
Ju highlighted the previous market structure, which was heavily influenced by a limited player base. In the past, the ecosystem was dominated by old whales, miners, and new retail investors who often traded among themselves. When these major players began cashing out, predicting market peaks was relatively straightforward, akin to a game of Musical Chairs where players tried to escape before the music stopped.
However, he asserts that the landscape has evolved. The current Bitcoin market is far more varied, with a broader set of participants, including exchange-traded funds and institutional investors like Microstrategy considering BTC purchases. This diversity is effectively making older market models obsolete, pushing analysts like Ju to rethink their strategies.
Ju noted that historically, profit-taking patterns were sparked by whales selling off at peak times, which would lead to large-scale sell-offs and subsequent price drops. Yet, now he believes the focus should shift towards the new liquidity sources from institutions and ETFs as they might absorb losses from whale sell-offs. In his words: “Now, instead of worrying about old whales selling, it’s more important to focus on how much new liquidity is coming from institutions and ETFs.”
Despite these encouraging signs, Ju adopts a more cautious stance regarding short-term market movement. He remarked, “Honestly, I still think the market is sluggish while absorbing new liquidity. Most indicators are hanging around the borderline, and it doesn’t feel like a clear bullish or bearish market right now. Of course, the recent price action is extremely bullish, but I’m talking about the profit-taking cycle.”
