The CEO of digital assets analytics platform CryptoQuant, Ki Young Ju, says Michael Saylor’s Strategy may be hampering a Bitcoin (BTC) recovery.
Ki Young Ju tells his 429,000 followers on X that by routinely buying large amounts of Bitcoin, Strategy may be reshaping the historical cycle of the top digital asset and keeping BTC in a price range amid high selling volume.
“Strategy’s BTC buying here looks more like a liquidity sink than a price catalyst. They should pause Bitcoin purchases, rebuild cash reserves and adopt a systematic framework for purchase timing. In a low-selling-pressure environment, that demand can move price meaningfully. Under current conditions, with selling pressure clearly elevated, it may do little more than defend the range. Bitcoin’s realized cap grew by $467 billion over the past two years, yet price is actually down 1%. Even with hundreds of billions in capital flowing into the market, all that happens is a change of hands. Price doesn’t move up.”
He says Strategy’s buying may be preventing a deeper market correction that would create the right conditions for an historical cycle bottoming pattern and a subsequent recovery.
“Worse, continuous buying may prevent a deeper market-clearing drawdown, giving more holders the liquidity and confidence to take profits. Normally, Bitcoin cycles reset through crashes, capitulation, weak-hand exits, and whale accumulation. This cycle has been different so far. Bitcoin has moved sideways in a wide range for almost two years. It hasn’t been strong enough to confirm a new bull market, but not weak enough to force real capitulation. As a result, weak hands have not been fully flushed out, and strong hands have not re-accumulated aggressively. The market may need a proper reset before it can build a stronger recovery, rather than continue drifting sideways. Bitcoin is structurally scarce, but scarcity does not make timing irrelevant.”
Bitcoin is trading for $60,986 at time of writing, down 2.8% on the day.
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