CryptoQuant CEO Ki Young Ju warned that if Bitcoin (BTC) fails to show a strong rebound in the short term, the risk of "institutional chain selling" in the market may significantly increase.
In a statement on February 6, Ju focused on potential causes of the severe volatility, particularly in the Bitcoin spot ETF market.
Ju's assessment was made in response to comments from DeFi development manager Parker White, who previously stated: "One or more Hong Kong hedge funds unrelated to cryptocurrency may be responsible for today's IBIT (BlackRock Bitcoin ETF) plunge."
CryptoQuant CEO believes that the simultaneous occurrence of such large-scale Bitcoin sell-offs in the market can only be explained by a scenario of "forced liquidation (forced selling)."
Ki Young Ju pointed out that the real danger lies in the "domino effect" triggered by this forced selling. According to him, as funds are liquidated, prices will further decline, creating additional selling pressure in the market; if this process continues, miners may face bankruptcy risks.
Ju also stated that even small investors who trade last may be forced into panic and begin to sell assets, further undermining market sentiment.
CryptoQuant CEO bluntly said: "If Bitcoin does not rise significantly from current levels next month, the risks of structural and institutional selling will significantly increase." According to Ju, if institutional investors "capitulate" at the bottom, they will find it very difficult to return to the market, and restoring lost confidence may take a long time.
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