CryptoQuant CEO Ki Yong-joo has warned that if Bitcoin (BTC) does not experience a strong recovery in the short term, the risk of an “institutional sell cycle” in the market could increase significantly.
In a statement dated February 6, Mr. Ju particularly drew attention to the possible reasons behind the rapid movement of the Spot Bitcoin ETF.
Ju’s assessment is in response to comments from DeFi development manager Parker White that “one or more non-crypto hedge funds based in Hong Kong could be responsible for today’s IBIT plunge.”
CryptoQuant’s CEO claimed that releasing such a large amount of Bitcoin onto the market at once can only be explained by a “forced sell” scenario.
Ki Yong-joo pointed out that the real danger lies in the domino effect caused by such forced sales. He said once the funds are liquidated, prices will fall, creating further selling pressure on the market. If this process continues, miners could face the risk of bankruptcy.
Chu also said that even small investors who are the last to trade could be forced into panic selling, which could further confuse market sentiment.
“If Bitcoin fails to achieve significant upside from current levels over the next month, the risk of structural and cascading institutional selling increases significantly,” said CryptoQuant CEO. According to Chu, if a financial institution “capitulates” at the bottom, it will not be easy to return to the market, and it may take a long time to restore lost confidence.
*This is not investment advice.
