CryptoQuant CEO Names the Most Dangerous Scenario for Bitcoin

The main threat to Bitcoin is not a sharp drop in prices, but prolonged stagnation. This view was expressed by Ki Young Ju, head of the CryptoQuant analytics platform. In his opinion, the market is capable of recovering relatively quickly even after a massive crash—provided that market participants maintain faith in the start of a new growth cycle.

The analyst considers a multi-year «sideways trend» to be a far more dangerous scenario. Prolonged stagnation could gradually erode investor interest in the first cryptocurrency, which would have long-term negative consequences for the entire market.

Such a turn of events would be particularly painful for Michael Saylor’s Strategy—the largest publicly traded corporate holder of Bitcoin. In the face of prolonged price stagnation, the company will find it increasingly difficult to maintain investor interest in its shares, through which it raises capital to purchase cryptocurrency.

Ju also noted that most of the factors that previously drove the market upward have already run their course. In particular, the launch of spot Bitcoin ETFs in the U.S.—an event the market had long awaited—has already taken place. According to the analyst, in every cycle, investors look for new reasons for an asset’s growth, while previous drivers gradually lose their influence.

«Bitcoin was supposed to become digital gold, but it often traded like a tech stock. It was supposed to be the ‘free money' of crypto-anarchists, but today many Bitcoin veterans are ‘pushing' other coins,» Ju wrote.

Separately, the analyst commented on Michael Saylor’s attempts to promote the concept of «Bitcoin banking» and digital credit. Ju expressed doubt that these ideas would resonate widely with the audience or become a full-fledged new driver of market growth.

Earlier, Ki Young Ju had already highlighted Strategy’s role in supporting the market: he cited the company’s large-scale Bitcoin purchases as one of the key factors holding up the price. In his estimation, without this demand, Bitcoin could have fallen to around $ 22,000.