The Price Rise Cycle of Bitcoin Is Not Over Yet

The explosive demand from institutions and the influx of ETF capital have disrupted traditional market patterns, causing a strong reversal from a top analyst and setting the stage for the next breakthrough of bitcoin. The large demand from institutions forces top analysts to reverse the bullish cycle of Bitcoin. The recovery of Bitcoin in recent weeks has driven a significant change in outlook from one of the most closely watched analysts in the cryptocurrency industry. Ki Young Ju, the founder and CEO of the on-chain analytics platform Cryptoquant, reversed his previous bearish stance and acknowledged that institutional capital flows are significantly reshaping the landscape. On May 9, he wrote on the social media platform X: Two months ago, I said the bull cycle had ended, but I was wrong. The selling pressure on Bitcoin is easing and large flows of money are coming in through ETFs. The revised viewpoint reflects what Ju sees as a fundamental shift in the structure of the bitcoin market. He describes the old market dynamics as predictable and driven by periodic sell-offs from large holders. "Previously, the bitcoin market was quite simple." The main players are the old whales, miners, and new retail investors, basically passing the bag to each other. When retail liquidity dries up and the old whales start to withdraw their money, predicting the peak of the cycle becomes relatively easy. It's like a game of musical chairs—everyone tries to withdraw money at the same time, and those who can't withdraw their money ultimately have to hold on to their holdings. The analyst emphasized that such patterns allow for a clearer identification of market peaks, especially during periods of heightened retail participation. He explained that the bitcoin market is currently shaped by more participants, making previous models obsolete. The market has become more diverse, with exchange-traded funds (ETF), Microstrategy (Nasdaq: MSTR), institutional investors, and even government agencies considering buying BTC. The CEO of Cryptoquant noted that in the past, profit-taking cycles began when whales sold at market peaks, causing widespread sell-offs and price declines. According to him, this dynamic has changed, requiring a departure from traditional cycle theories. He stated that new and uncertain liquidity sources and trading volumes indicate a shift as the bitcoin market becomes increasingly integrated with traditional finance (TradFi). The executive stated: Now, instead of worrying about the old whales selling off, it is more important to focus on the new liquidity coming from institutions and ETFs because this new influx of funds could be larger than the strong sell-off by whales. Although optimistic, he still expressed a cautious view on the short-term outlook: "To be honest, I still think the market is sluggish in absorbing new liquidity. Most indicators are hovering around the boundaries. Currently, there is no clear sense of a bullish or bearish market. Of course, the recent price movements have been extremely bullish, but I am talking about the profit-taking cycle."