CryptoQuant CEO Says Strategy Bitcoin Buying Acts as Liquidity Sink

CryptoQuant CEO Ki Young Ju stated that Strategy's Bitcoin purchasing pattern may be hampering a Bitcoin recovery. In a statement to his 429,000 followers on X, Ju characterized Strategy's routine large-scale Bitcoin acquisitions as functioning more like a liquidity sink than a price catalyst, keeping BTC in a price range amid elevated selling volume. Ju attributed this effect to the continuous buying preventing the market correction conditions historically associated with cycle bottoming patterns. The analysis comes as Bitcoin's realized cap grew by $467 billion over the past two years while price declined 1%, according to Ju's data.

CryptoQuant CEO Describes Strategy Buying as Liquidity Sink

Ju stated that Strategy's Bitcoin purchases appear to function as a liquidity sink rather than a price catalyst. He told his X followers that the company should pause Bitcoin purchases, rebuild cash reserves and adopt a systematic framework for purchase timing. Ju wrote that in a low-selling-pressure environment, demand can move price meaningfully, but under current conditions with elevated selling pressure, continuous buying may do little more than defend the range.

Bitcoin Realized Cap Grew $467 Billion While Price Declined 1%

According to Ju's analysis, Bitcoin's realized cap grew by $467 billion over the past two years, yet price declined 1% during the same period. Ju stated that even with hundreds of billions in capital flowing into the market, the result has been a change of hands rather than upward price movement.

Ju Claims Continuous Buying May Prevent Market Reset

Ju stated that continuous buying may prevent a deeper market-clearing drawdown, giving more holders the liquidity and confidence to take profits. He wrote that Bitcoin cycles normally reset through crashes, capitulation, weak-hand exits, and whale accumulation. Ju characterized this cycle as different, with Bitcoin moving sideways in a wide range for almost two years—not strong enough to confirm a new bull market, but not weak enough to force real capitulation. He stated that as a result, weak hands have not been fully flushed out, and strong hands have not re-accumulated aggressively.

Bitcoin Trades at $60,986

Bitcoin was trading at $60,986 at time of writing, down 2.8% on the day, according to the source.

FAQ

What did CryptoQuant CEO Ki Young Ju say about Strategy's Bitcoin buying?

Ki Young Ju stated that Strategy's Bitcoin buying looks more like a liquidity sink than a price catalyst, and suggested the company should pause purchases and rebuild cash reserves.

How much did Bitcoin's realized cap grow over the past two years according to Ju?

According to Ju's data, Bitcoin's realized cap grew by $467 billion over the past two years while price declined 1% during the same period.