After Bitcoin's price broke $100,000, CryptoQuant founder and CEO Ki Young Ju retracted his bearish prediction. For the past few months, the cryptocurrency space has been filled with calls for price declines, and this move surprised the entire market. As market sentiment warms up, Ki Young Ju has turned bullish and explained the reasons for his change of stance and the current market situation.
The Bitcoin bull market cycle has not yet ended
In a post on X, CEO Ki Young Ju explained how the current market has deviated from previous cycles. First, he explained that the market no longer relies on Bitcoin "whales," retail investors, and miners to drive the market. This used to be the method to judge the cycle's peak, which was when "whales" and miners were selling off. However, the market has successfully continued to move forward, and Bitcoin's price is now better able to absorb large-scale sell-offs without issues.
Young explained that this can be attributed to the market's diversification to date. As early as 2024, the emergence of the spot Bitcoin ETF approved by the U.S. Securities and Exchange Commission (SEC) opened new avenues for liquidity. Now, it is not only new retail investors participating, but institutional investors have also gained access to the market, and their funds are more substantial.
This new, substantial liquidity means that even the sell-offs by large whales no longer impact Bitcoin's price as they did before. Therefore, this CEO believes it's time to shift the focus from old mechanisms to new mechanisms.
Given this change in trend, the CEO of CryptoQuant stated that it may be time to abandon cycle theory. This is because the flow of liquidity has changed, as sources of funds have become more uncertain. Young explained, "Now, rather than worrying about the sell-off by old whales, it’s better to focus on how much new liquidity is coming from institutions and ETFs, as this new inflow may even exceed the strong sell-off by whales."
Nevertheless, he still believes that, in terms of profit-taking cycles, the current market does not present a clear bearish or bullish pattern. As he explained, the market is still slow to absorb all the new liquidity coming from different sources, and various indicators are still "hovering on the edge."
Bitcoin's price continued to strengthen after breaking $100,000, with bulls targeting a historical high above $109,000. Investor profitability has also significantly increased, with data from IntoTheBlock showing that currently, as much as 99% of Bitcoin holders are in profit.
