- Bitcoin’s price structure remains strong despite recent decline, says Ki Young Ju.
- A $1.12 trillion realized cap signals continued demand for Bitcoin in the market.
- Institutional investments, like Strive’s $162M purchase, bolster market confidence.
Bitcoin’s recent slide into the mid-$90,000 range has sparked concern across the cryptocurrency market. However, CryptoQuant CEO Ki Young Ju believes Bitcoin’s price structure remains stronger than many traders think. He maintains that Bitcoin can rebound at any time, provided capital inflows continue to support the asset.
The decline of $114,000 to the present prices was accompanied by a stronger US dollar and increasing real yields. Bitcoin also dropped below the value of $100,000 following the opening of the US government, even though the analysts had anticipated that the move would elevate the price more. Ju believes that this decrease is significant, but it is not always an indicator of long-term weakness.
Bitcoin’s Record High Realized Cap Signals Strong Market Demand
Ju cited the achieved cap of Bitcoin that lately made a record high of $1.12 trillion. The realized cap increases with the entry of new capital in the market, implying that Bitcoin will still be in demand. Ju interprets this as an indication that the market is still strong even though it has declined in price recently. This is a requirement that he thinks will assist in lifting the price of Bitcoin in the long run.
Also Read: Ethereum Drops Even as long-term Investors and BlackRock Increase ETH Holdings
The market strength of BTC is also largely contributed by institutional investment. Ju cited a $162 million Bitcoin acquisition by Strive, a company owned by Vivek Ramaswamy. This action indicates that major investors still believe in BTC despite the volatility in the short term. Although cryptocurrency dropped by 10% in less than three days, institutional capital continues to flood the market.
Ju also highlighted the $94,000 price as a crucial support level for BTC. Data shows that wallets with a tenure of 6 to 12 months have realized an approximate price of $94,000. Ju said that the market should not treat the current trend as a bear cycle unless the token goes below this point. This renders the $94,000 area vital to the stability of BTC.
Macroeconomic Pressures Affect Bitcoin, But Recovery Is Possible
BTC is currently trading at $95,892.02, with slight negative returns in the recent 24 hours. Despite the decline, Ju indicates that the market structure of cryptocurrency is robust. Glassnode data indicates that there was a decline in the outflows of BTC among long-term holders that moved 26,500 BTC per day in this month.
Cryptocurrency is affected by the macroeconomic environment as well. Risk assets such as Bitcoin have been pressurized by the increase in the US dollar and a higher real yield. Nevertheless, Ju believes that BTC will not require a new stimulus to get back on track. A macroeconomic tightening should be stopped, and it might be sufficient to create a rebound.
Data from the Kalshi prediction market shows that there is a 63% probability that BTC will be trading below $90,000 by the end of the year. This increased anticipation of further decline points to the continued uncertainty in the market. Nevertheless, due to high demand and institutional involvement, Ju is confident in the long-term prospects of BTC.
Also Read: Bitcoin Price Outlook: Could Surge to $120,000 If Buyers Hold
