CEO of digital asset analytics platform CryptoQuant, Ki Young Joo, says Michael Saylor’s strategy could hold back Bitcoin (Bitcoin) restore.
Ki Young Joo He tells His 429,000 followers on
“Buying BTC through the strategy here looks more like a liquidity sink than a price catalyst. They should pause Bitcoin purchases, rebuild cash reserves and adopt a systematic framework for timing purchases. In a low selling pressure environment, this demand could move the price meaningfully. Under current conditions, with selling pressure clearly high, it may do little more than defend the range. Bitcoin’s realized cap has grown by $467 billion over the past two years, yet the price is actually down 1%. Even with Hundreds of billions of capital flow into the market, all that happens is a change of hands and the price does not move up.
He says buying the strategy may prevent a deeper market correction that would create the right conditions for a historical cycle bottom pattern and subsequent recovery.
“Worse still, sustained buying may prevent a deeper market-clearing pullback, giving holders more liquidity and confidence to take profits. Typically, Bitcoin cycles are reset through crashes, capitulations, weak exits, and whale build-ups. This cycle has been different so far. Bitcoin has moved sideways in a wide range for about two years. It has not been strong enough to confirm a new bull market, but not weak enough to force a true capitulation. As a result, weak hands have not been completely eliminated. The market needs a proper reset before it can build a stronger recovery, rather than continuing to drift sideways. Bitcoin is structurally scarce, but scarcity does not make timing irrelevant.
Bitcoin is trading for $60,986 at the time of writing, down 2.8% on the day.
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