Ki Young Ju, CEO of CryptoQuant, announced the obsolescence of the Bitcoin cycle theory, attributing it to changes in market conditions. This announcement may impact traditional market forecasting models.
Announcement on the Obsolescence of Bitcoin Cycle Theory
Ki Young Ju, a leading figure in crypto analytics, declared the Bitcoin cycle theory obsolete. Recent ETF inflows and geopolitical influences have diminished the relevance of this theory. Ju explains that event-driven market reactions now dominate traditional indicators.
Institutional Inflows as Primary Market Drivers
This announcement has led to changes in market analysis, shifting focus to institutional inflows as the main factors driving market growth. This has altered traditional trading and mining models, impacting businesses reliant on cycle theory. Financial institutions like ETFs and companies such as MicroStrategy play a pivotal role in market dynamics.
Historical Bitcoin Patterns Under Threat
Previously, Bitcoin price cycles aligned with four-year halving events. However, new dynamics such as institutional participation are changing this pattern, making historical comparisons less reliable. If current trends persist, the market could see a sustained upward trajectory, leading to novel market dynamics.
The announcement regarding the obsolescence of the Bitcoin cycle theory may significantly alter the approach to market analysis. As institutional inflows gain prominence, historical patterns may cease to hold, opening new possibilities for the market.
