Bitcoin News Today: CryptoQuant CEO Declares Bitcoin Cycle Theory Obsolete as Institutional Investors Take Over

CryptoQuant CEO Ki Young Ju has declared the traditional Bitcoin cycle theory obsolete, signaling a paradigm shift in market dynamics as institutional investors increasingly dictate price action [1]. Historically, Bitcoin's cyclical patterns relied on two core principles: buying during whale accumulation phases and selling when retail investors entered en masse. This framework, which defined past bull and bear markets, is now being disrupted by institutional dominance and strategic long-term accumulation [2].

The analyst attributes this transformation to the growing presence of institutional players, including ETFs, hedge funds, and corporate treasuries, which have supplanted retail-driven volatility. On-chain data from CryptoQuant reveals a significant decline in retail Bitcoin ownership over the past two years, with long-term holders now outnumbering active traders. This shift has rendered traditional indicators—such as social media sentiment and retail panic—less reliable for predicting market tops [3].

Ki Young Ju emphasized that the current cycle diverges sharply from previous patterns. Where once whales distributed assets to retail during bull markets, the new dynamic involves transfers between institutional actors. "Old whales are selling to new long-term whales," he explained, noting that this institutional accumulation strategy lacks the euphoric retail frenzies seen in 2021. Analyst Burakkesmeci corroborated this trend, describing the current environment as "quiet and smart money on stage," with most participants still on the sidelines [4].

This institutionalization complicates traditional bear market predictions. Previously, retail-driven peaks were marked by clear signals like over-leveraged positions and social media hype. However, institutions operate with longer time horizons and greater discipline, making market bottoms and tops harder to identify. Ki Young Ju warned that if institutional sentiment turns negative, corrections could become sharper and more abrupt than historical precedents, posing challenges for traders reliant on outdated models [5].

The implications for investors are profound. Analysts must now discard conventional frameworks and develop new metrics to gauge institutional sentiment. For risk managers, the absence of clear retail-driven cues increases uncertainty, requiring more nuanced data-driven approaches. As Ki Young Ju concluded, the era of predictable Bitcoin cycles has given way to a complex, institutional-dominated landscape where market behavior is shaped by strategic accumulation rather than speculative retail participation [6].

Sources:

[1] [title: The Bitcoin Cycle Theory Is Dead, CryptoQuant’s Ki Young Ju Says] [url: https://www.livebitcoinnews.com/112968-2-bitcoin/]

[2] [title: The Bitcoin Cycle Theory Is Dead, CryptoQuant’s Ki Young Ju Says] [url: https://www.livebitcoinnews.com/112968-2-bitcoin/]

[3] [title: The Bitcoin Cycle Theory Is Dead, CryptoQuant’s Ki Young Ju Says] [url: https://www.livebitcoinnews.com/112968-2-bitcoin/]

[4] [title: The Bitcoin Cycle Theory Is Dead, CryptoQuant’s Ki Young Ju Says] [url: https://www.livebitcoinnews.com/112968-2-bitcoin/]

[5] [title: The Bitcoin Cycle Theory Is Dead, CryptoQuant’s Ki Young Ju Says] [url: https://www.livebitcoinnews.com/112968-2-bitcoin/]

[6] [title: The Bitcoin Cycle Theory Is Dead, CryptoQuant’s Ki Young Ju Says] [url: https://www.livebitcoinnews.com/112968-2-bitcoin/]