CryptoQuant CEO Says It’s Time To Throw Out ‘Cycle Theory’
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CryptoQuant Founder and CEO Ki Younger Ju has walked again his bearish prediction after the Bitcoin price broke out above $100,000. This transfer has taken all the market abruptly after requires decrease costs dominated the crypto area for the previous couple of months. As sentiment has moved again into the optimistic, Younger has turned bullish, explaining the change in his stance and what’s going on with the market proper now.
Bitcoin Bull Cycle Is Not Over
In an X post, CEO Ki Younger Ju defined how the present market has deviated from the earlier cycles. For one, he explains that the market is not reliant on outdated Bitcoin whales, retail buyers, and miners to maneuver the market. This was once the way in which to know the cycle prime, which was when outdated whales and miners have been offloading their luggage. Nevertheless, the market has managed to maneuver on, and the Bitcoin value is now higher positioned to soak up massive sell-offs with out subject.
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Younger explains that this may be attributed to how numerous the market has change into thus far. The appearance of Spot Bitcoin ETFs, which have been accepted by the Securities and Alternate Fee (SEC) again in 2024, have opened up new avenues for liquidity. Now, it isn’t solely new retail buyers taking part in the sector, but additionally institutional buyers who’ve been given an avenue to enter the market, and with a lot bigger pockets.
This new and substantial circulation of liquidity has made it in order that even sell-offs from massive whales are not impacting the Bitcoin value the way in which they used to. Thus, the CEO believes that it’s time to really shift focus from the outdated to the brand new.
Given this modification within the tide, the CryptoQuant CEO acknowledged that it is perhaps time to throw out the cycle concept. That is due to the modifications in liquidity circulation, as sources have change into extra unsure. “Now, as an alternative of worrying about outdated whales promoting, it’s extra vital to concentrate on how a lot new liquidity is coming from establishments and ETFs since this new inflow can outweigh even robust whale sell-offs,” Younger defined.
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However, he nonetheless posits that the present market isn’t flashing a transparent bearish or bullish sample on the subject of the profit-taking cycle. As he explains, the market continues to be sluggish round absorbing the entire new liquidity coming from the totally different sources and indicators are nonetheless “hanging across the borderline.”
As for the Bitcoin value, it continues to point out energy after crossing $100,000, as bulls eye new all-time highs above $109,000. Investor profitability has additionally skyrocket and a whopping 99% of all Bitcoin holders at the moment are sitting in revenue, in accordance with data from IntoTheBlock.
Featured picture from Dall.E, chart from TradingView.com
