CryptoQuant’s Ki Young Ju warns that absent a near-term Bitcoin rebound, forced liquidations and cascading institutional selling could hit ETFs, miners, and trust.
Summary
- CryptoQuant CEO Ki Young Ju says large BTC releases may signal forced institutional liquidations that pressure prices and ETF flows.
- He warns that if Bitcoin does not rebound within a month, structural, chain institutional selling could rise and push miners toward bankruptcy risk.
- Ju notes institutions that capitulate near market lows may struggle to re-enter, with trust in Bitcoin markets taking a long time to rebuild.
CryptoQuant CEO Ki Young Ju stated that the risk of institutional selling in cryptocurrency markets could increase significantly if Bitcoin does not experience a strong recovery in the short term, according to a statement dated February 6.
CryptoQuant analyst warns of pain in Bitcoin recovery
Ju’s comments addressed potential reasons behind sharp movements in spot Bitcoin exchange-traded funds, particularly responding to observations from DeFi Development manager Parker White regarding a notable ETF decline. White suggested one or more Hong Kong-based non-crypto hedge funds may have contributed to the drop.
The CryptoQuant executive argued that large-scale Bitcoin releases into the market could indicate a forced sell-off scenario. Ju outlined a potential domino effect in which fund liquidations could drive prices lower, creating additional selling pressure in the market and potentially pushing miners toward bankruptcy risk.
“If Bitcoin fails to achieve a significant rise from current levels in the next month, the risk of structural and chain institutional selling increases significantly,” Ju stated.
According to Ju’s analysis, institutional investors who exit positions at market lows may face difficulty returning to the market, with trust rebuilding potentially requiring extended time periods.
The statement included a disclaimer noting the information does not constitute investment advice.
Bitcoin ETFs have experienced increased volatility in recent weeks, with market participants monitoring institutional trading activity closely. The cryptocurrency sector remains sensitive to large-scale transactions from institutional holders, according to market analysts.
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