CryptoQuant CEO: Bitcoin’s “distribution” could be a handover to Wall Street, not a death knell
CryptoQuant CEO Ki Young Ju argues that the recent wave of Bitcoin selling looks less like structural collapse and more like a major transfer of supply — from early holders and miners to U.S. financial institutions, ETFs and a new generation of long-term investors.
In a string of posts on X, Ki said the selling by Bitcoin “OGs” and long-time miners should be read as a “change of hands” rather than proof that the cycle is over. The crucial question, he wrote, is not only how much is being sold but who is absorbing it.
“If the people holding it now are entities that can bring in even greater liquidity going forward, then I think we can look forward to the next rally at any time,” Ki said, stressing that the composition of the holder base determines an asset’s long-term outlook.
Why this matters
- Heavy sell pressure has coincided with sizable institutional absorption. Ki described the market as a “massive change of hands” — older holders distributing while ETFs, entities labeled “Strategy” in his thread, and newer cohorts take the other side.
- Ki estimates the average investor cost basis is around $53,000, and notes that historically bear markets only end after price drops below the realized price. He had thought that would be hard to test because institutions were buying and some big buyers weren’t selling. Recent price action, however, shows “unusually strong sell pressure.”
Big absorption numbers — and a puzzle
Ki highlighted how much BTC has been removed from circulation by buyers he tracked:
- Since January 2023, “Strategy” bought 711,206 BTC and sold just 32 BTC — a net removal of 711,174 BTC.
- Since March 2024, ETFs absorbed 509,102 BTC while “Strategy” bought an additional 650,706 BTC. Combined, that’s 1,240,808 BTC absorbed.
Despite that level of absorption, Bitcoin’s price has returned to similar levels — a surprising outcome given the scale of demand.
For context, Ki notes exchange reserves are roughly 2.7 million BTC and Satoshi Nakamoto is estimated to hold about 1 million BTC — meaning an amount larger than Satoshi’s estimated stack, and nearly half of exchange reserves, has been absorbed without sparking a sustained rally.
A maturing holder base
Ki also points to a structural shift inside realized-cap cohorts: investors who entered in the 6-month-to-2-year window now represent about 53% of realized cap, up from 15% two years ago. That shift suggests many short-term buyers from this cycle are evolving into longer-term holders; in the previous cycle, that same cohort reached 68% of realized cap before the market bottomed.
Risks and contradictions
Not everything is rosy. Ki reposted analysis from Julio Moreno showing total Bitcoin demand — speculative plus spot — contracting by about 232,000 BTC per month. Moreno argues the current correction is driven primarily by Bitcoin demand dynamics, not broader macro moves, since equities and manufacturing indicators remain strong.
Ki’s takeaway is a mixed but cautiously optimistic one: the market is under heavy sell pressure now, yet the transfer toward institutions and maturing cohorts could ultimately deepen Bitcoin’s demand base. He admits there is a cultural trade-off — institutional ownership may erode some cypherpunk ethos — but believes institutions may provide a stronger, more durable demand foundation over time.
“Still, I believe there will definitely be another upward cycle for Bitcoin,” Ki wrote. “As an investor, I still believe in Bitcoin and think it’s worth waiting a bit longer.”
Price check: BTC traded around $62,696 at press time.
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