Bitcoin’s New Era: Is Cycle Theory Obsolete?

CryptoQuant CEO Ki Young Ju has revised his bearish Bitcoin prediction following the cryptocurrency’s surge past $100,000. This unexpected breakout has shifted market sentiment, prompting Ju to adopt a bullish outlook. He argues that the traditional cycle theory, which relied on the actions of old whales, miners, and retail investors to predict market tops, is no longer applicable. The market’s increased diversity, fueled by the influx of institutional investors through Spot Bitcoin ETFs (approved in 2024), has created a more resilient environment capable of absorbing large sell-offs. This new liquidity, Ju explains, can outweigh even significant whale sell-offs, rendering the old indicators less reliable. While acknowledging that clear bullish or bearish signals are still absent, Ju emphasizes the importance of monitoring new liquidity from institutions and ETFs as a key market driver. The Bitcoin price continues its upward trajectory, exceeding $100,000 and aiming for new all-time highs above $109,000. IntoTheBlock data reveals that 99% of Bitcoin holders are currently in profit, further supporting the bullish sentiment. Ju’s shift in perspective highlights a fundamental change in the Bitcoin market, moving away from reliance on historical patterns to a focus on the impact of institutional investment and increased liquidity. This new paradigm challenges traditional market analysis and necessitates a reassessment of established cycle theories.

(Source: https://www.newsbtc.com/news/bitcoin/bitcoin-price-cycle-theory/)