According to external media comments, the greater pressure that Bitcoin is currently facing is not a rapid decline, but rather a long-term lack of direction. CriptoQuant CEO Ki Young Ju stated that the market often waited for a rebound after the collapse, but that continued stagnation would make it easier to weaken investor confidence and attract new capital.

ETF, then the old narrative subsided.

According to the article, the position of bitcoin in the market has changed with the approval of the United States of America for active ETF and the continued involvement of mainstream financial institutions. Ki Young Ju believes that it is increasingly like a traditional financial asset and is no longer a crisis hedge tool highlighted by early supporters.

He also mentioned that the multiplicity of narratives on which markets had relied in the past was diminishing. Some of the early participants moved to other projects, and the new concepts were more complex and difficult to quickly understand by broader funding. In such cases, the lack of a clearer new story of the currency may make subsequent liquidity more difficult.

There's a disconnect between chain activity and price performance.

The article also mentions that CriptoQuant observed a clear deviation: bitcoin price fluctuations were limited but chain activity was rising. The share of small transactions below 0.01 BTC has risen to about 80 per cent, compared to less than half in 2023.

However, such increases are considered to be more from technical factors than from the entry of new funds. Ki Young Ju argues that the increased noise in the chain has not been translated directly into a price-up, that larger funds are still visible and that there is a disconnect between network activity and market pricing.

Institutional finance model constraints

The article also extends this transversal risk to the institutional level. Ki Young Ju mentioned that the long-term reliance on finance to increase the pattern of bitcoin is more sensitive to price stagnation. In the case of Strategy, for example, where the buy-in of bitcoin continues, market premiums on the relevant financing instruments may be squeezed in the absence of support for price increases.

  • Small transactions, about 80%.
  • Less than half in 2023
  • STRC 85.32, less than approximately 13 per cent

According to the text, Strategy ' s STRC priority share has fallen to US$ 85.32, about 13 per cent below the face value. Ki Young Ju further warned that the ability to finance might be affected if markets were delayed with new catalysts and, in extreme cases, might even force some currency-holders to sell bitcoin in response to debt pressures.