en.bitcoinsistemi.com
CryptoQuant CEO Ki Young Ju warned that the risk of a “chain of institutional selling” in the markets could significantly increase if Bitcoin (BTC) does not experience a strong recovery in the short term.
In his statement dated February 6, Ju drew attention to the possible reasons behind the sharp movements, particularly in spot Bitcoin ETFs.
Ju’s assessment came in response to DeFi Development manager Parker White’s comment that “one or more Hong Kong-based non-crypto hedge funds may be responsible for today’s sharp drop in IBIT.”
The CEO of CryptoQuant argued that releasing such a large amount of Bitcoin into the market at once could only be explained by a “forced sell-off” scenario.
Ki Young Ju pointed out that the real danger lies in the domino effect triggered by such forced sales. According to him, as funds are liquidated, prices fall, creating more selling pressure in the market; if this process continues, miners may face the risk of bankruptcy.
Ju also stated that even the smallest investors who are the last to trade could be forced into panic selling, which would further disrupt market psychology.
The CEO of CryptoQuant stated, “If Bitcoin fails to achieve a significant rise from current levels in the next month, the risk of structural and chain institutional selling increases significantly.” According to Ju, if institutions “surrender” at the bottom, it will not be easy for them to return to the market, and rebuilding lost trust could take a long time.
*This is not investment advice.