Key Insights
- •OG holders are selling BTC into the dip, according to CryptoQuant CEO Ki Young Ju.
- •Institutions and funds are absorbing that supply; Strategy now holds around 649,870 BTC after adding 8,178 BTC.
- •Ju warns institutional inflows are strong enough to alter the market: "selling pressure is easing" and he urges analysts to "throw out that cycle theory."
Institutional Demand Reshapes Market Dynamics
CryptoQuant CEO Ki Young Ju has stated that Bitcoin’s typical four-year boom-and-bust cycle is effectively "breaking" as new inflows from institutional players reshape the market. Ju admitted to being mistaken in calling the end of the bull cycle months prior, noting that "selling pressure is easing, and massive inflows are coming through ETFs… In the past, the market was pretty simple… old whales, miners, and retail passed the bag to each other."
He argued that this dynamic has fundamentally changed. Original Bitcoin holders, often referred to as OG investors, are now selling into dips, and these coins are being acquired by long-term institutional buyers. According to Ju, these new inflows continue to strengthen despite market dips, altering or even breaking the traditional Bitcoin market cycle structure.
Institutional Demand Keeps Market Supported
Institutional demand now represents a significant and growing portion of BTC ownership. For instance, Strategy (formerly MicroStrategy) has increased its holdings to approximately 649,870 BTC after acquiring an additional 8,178 BTC, valued at $835 million, underscoring its ongoing accumulation strategy.
Ju's analysis emphasizes that these institutional reserves, whether from corporate treasuries or passive investment funds, are now driving prices as much as, if not more than, the transactions from older "whale" entities. The influx of liquidity from traditional finance (TradFi) is compelling analysts to re-evaluate established cycle narratives. Both institutional and retail investors are increasingly turning to Bitcoin as a hedge against vulnerabilities in the Treasury market and against ongoing fiat currency devaluation.
In light of these evolving trends, Ju has advised that it is time to "throw out that cycle theory." He further elaborated, stating, "Instead of worrying about old whales selling, it’s more important to focus on how much new liquidity is coming from institutions and ETFs."
This indicates a significant shift in market focus from the behavior of long-standing holders to the volume of new capital entering the market.
While on-chain data remains valuable, Ju stresses that "data is just data, and perspectives vary." However, analysts may need to adapt their analytical frameworks to account for these new market participants and dynamics.
Bitcoin’s Appeal Versus Fiat Currency
This institutional-driven narrative aligns with a broader sentiment that Bitcoin's attractiveness is increasing in comparison to traditional financial assets.
In related Bitcoin news, finance author Robert Kiyosaki recently articulated his preference for crypto over fiat. On X (formerly Twitter), he stated, "My reason is: I do not trust the Federal Reserve Bank, US Treasury, or Wall Street."
Kiyosaki explained that he avoids "fake" paper assets, opting instead to invest in tangible assets such as gold, silver, and cryptocurrency, because these cannot be created or manipulated by governments or banks. He added that he purchases Bitcoin and Ethereum with the understanding that they can experience volatility, because neither the Fed, the US Treasury, nor figures like Warren Buffett can produce Bitcoin or other cryptocurrencies.
Kiyosaki frames fiat government currency as "Fake Money," while Bitcoin and other cryptocurrencies are characterized as "People’s Money."
Kiyosaki's commentary, though originating from outside the on-chain analytics community, reinforces the view that confidence in traditional, inflation-prone assets is diminishing.
Overall, Ju's analysis and other Bitcoin news coverage suggest a maturing cryptocurrency market. The migration of ownership from retail investors to long-term institutional holders could potentially lead to reduced volatility for Bitcoin over time.
For investors, this evolving landscape suggests that market dips may be better interpreted as buying opportunities, with institutional demand absorbing much of the selling pressure, rather than as indicators of an impending collapse.
Concurrently, the fading of old cyclical patterns implies that forecasting market tops and bottoms may become more challenging. Traders are likely to closely monitor data from sources like CryptoQuant, paying attention to exchange inflows, ETF flows, and whale activity, to gauge shifts in selling pressure.