CryptoQuant CEO Ki Young Ju has shed light on the current state of the cryptocurrency market, particularly with regards to Bitcoin's price.
According to his analysis, the recent $60,000 level that Bitcoin is trading at may be artificially inflated due to the absorption of massive selling from older holders by institutional buyers, including Michael Saylor's Strategy and exchange-traded funds (ETFs).
Saylor's company, Strategy, sold 32 BTC in May for approximately $2.5 million, which is a tiny fraction of their overall holdings.
Ki argues that this sale was not significant enough to explain the major drawdown in Bitcoin prices, but rather it highlights the importance of these institutional buyers in absorbing supply and preventing a deeper bear market.
The current market structure has changed since the introduction of spot ETFs, which have turned Bitcoin into a regulated brokerage-account asset for institutions, advisors, and passive investors.
However, with recent outflows from U.S. spot Bitcoin ETFs reaching a record 13-day streak, the market is now facing a more challenging situation.
The analysis concludes that Bitcoin's price will depend on whether these institutional buyers can continue to absorb supply, or if they become weaker and unable to provide the same level of demand.