CryptoQuant CEO Revises Bitcoin Outlook Due to ETF Inflows

Ki Young Ju, the founder and CEO of CryptoQuant, has publicly acknowledged that his previous assessment of Bitcoin’s market direction was incorrect. Just two months ago, Ju had predicted that the bull cycle for Bitcoin was likely over. However, recent market developments, particularly the influence of exchange-traded fund (ETF) inflows, have led him to revise his outlook.

Historically, the Bitcoin market was heavily influenced by whales, miners, and retail investors. These participants engaged in frequent trading, and the market was characterized by liquidity drying up. When whales exited, prices would fall, creating a scenario Ju described as a game of “musical chairs,” where late participants were left with losses.

Ju has noted a significant shift in the market dynamics. In a recent post, he argued that the current cycle is different from previous ones. The market is no longer solely driven by crypto-native insiders but is increasingly influenced by institutional investors, ETFs, and even companies like Strategy. Government agencies have also shown interest in Bitcoin, further diversifying the investor base.

Ju highlighted the emergence of new sources of liquidity in the market. ETFs and institutional investors are injecting substantial capital, which can counteract whale sell-offs. This influx of new liquidity has altered the market’s behavior, making it less predictable than before.

Despite Bitcoin’s recent rally, Ju remains cautious. He believes the market is still adapting to this new liquidity flow, and a clear bullish or bearish trend has yet to emerge. While the price momentum is positive, Ju contends that market participants have not fully committed in either direction.

Ask Aime: What's the current outlook for Bitcoin's market direction after Ki Young Ju's recent assessment?

Ju also emphasized the importance of on-chain data. Although he admits his earlier prediction was wrong, he reminded his followers that on-chain data, like off-chain data, is valuable but can be interpreted differently by various analysts. Ju expressed regret over the mistake and committed to providing more accurate analyses in the future.