CryptoQuant Founder Ki Young Ju Criticizes Strategy's Bitcoin Buying Approach
Ki Young Ju, founder of CryptoQuant, pointed out that Strategy's current Bitcoin purchasing behavior resembles a liquidity absorber rather than a price catalyst.
In the past two years, Bitcoin's market value increased by $467 billion, yet its price fell by 1%. Despite hundreds of billions of dollars flowing in, continuous turnover has prevented price increases; in an environment of rising selling pressure, Strategy's buying only serves to defend price ranges, and ongoing purchases may hinder market-clearing corrections while providing liquidity for holders to realize profits.
Ki Young Ju offered three suggestions to Saylor: pause Bitcoin purchases until cash reserves and dividend coverage are restored; establish a systematic model-driven purchasing framework; and create a disciplined selling framework for the next bull market, selling part at peaks to deleverage and reserve low-price ammunition for future accumulation.
Source: Public Information
ABAB AI Insight
Ki Young Ju has previously warned about abnormal Bitcoin cycles through CryptoQuant's on-chain data. Since 2020, Strategy has aggressively accumulated Bitcoin through convertible bonds and stock financing, effectively supporting prices during bear markets. However, the current high-leverage structure faces dividend pressure and declining cash reserves, similar to past cycles where institutions were forced to adjust after excessive leverage.
Strategy's continuous Bitcoin purchases essentially bind corporate capital paths to BTC volatility, mobilizing funds through tools like STRC. However, Ki Young Ju believes this approach provides more liquidity for sellers during sideways markets rather than new demand, suggesting a pause in purchases to rebuild cash buffers and shift towards model-driven operations, avoiding the market perception of "always buying at local tops."
Compared to the classic path of capitulation-cleaning-whale accumulation after Bitcoin crashes in 2018 and 2022, the current cycle has seen two years of wide-ranging sideways movement without confirming a bull market or triggering sufficient capitulation. Strategy's role has shifted from a price catalyst to a potential risk point, and the industry may need to reset to attract strong players back into the market.
This fundamentally reflects changes in cyclical mechanisms under capital concentration and technological substitution: institutional leverage tools amplify buying but also solidify selling pressure. Continuous sideways movement without clearing hinders traditional cycle resets, forcing capital to shift towards more disciplined and risk-managed strategies, reconstructing the long-term pricing power foundation of Bitcoin as an asset class.
ABAB News · Law of Cognition
Unlimited buying does not equal unlimited rising; liquidity absorbers ultimately become selling pressure channels.
Without clearing in the leverage cycle, there is no rebirth; the longer the sideways movement, the more severe the reset.
Hoarding coins is faith; risk management is the formula for long-term survival.