CryptoQuant CEO Highlights $56,000 as Bitcoin’s Realized Price Level

CryptoQuant CEO Ki Young Ju clarifies that the $56,000 level for Bitcoin is not a prediction but a "realized price" reference point. He believes the cycle theory is broken and prices could change based on macroeconomic factors and market sentiment.

Key Points:

The Bitcoin market is analyzed through futures, spot, and on-chain data.
Futures market: Futures whales have exited, retail investors dominate, and BTC inflows from spot to futures exchanges have dropped.
Spot market: Institutional selling affects Coinbase Premium, Spot Bitcoin ETFs experience net negative flows, and capital raising appears difficult.
On-chain metrics suggest strong selling pressure, with realized cap growth stalled and market cap growing slower than realized cap.
CryptoQuant’s PnL Index indicates whales are taking profits.

Market Insights:

Ju dismisses the classic cycle bottom theory; he sees short-term conditions as weak due to slow dollar liquidity and tight funding markets.
A shift in policy narratives, such as rate cuts, could quickly boost sentiment and liquidity.
Long-term structural changes include stablecoin adoption and reverse ICOs by public companies, potentially benefiting Bitcoin while altcoins may lose liquidity.

Ju emphasizes his focus on data analysis over price predictions, using the $56,000 as a data-driven reference rather than a definitive end-point for Bitcoin's current correction.

At press time, BTC traded at $91,659.