Strategy's Bitcoin Buying Absorbing Liquidity Rather Than Driving Prices

Ki Young Ju, CEO of CryptoQuant, recently weighed in on Strategy's Bitcoin buying strategy. According to Ju, Strategy's purchases are absorbing market liquidity rather than driving price gains.

Ju pointed out that despite a surge in realized capitalization, the Bitcoin price has actually fallen over the past two years. He noted that hundreds of billions of dollars have flowed into the market, but prices have not risen.

In his view, Strategy's continued buying may be delaying the market's natural correction. Ju suggested that Strategy should consider halting its purchases and rebuilding cash reserves, as well as implementing a risk-management system to raise cash through partial sales in the next bull market.