Transitions in Bitcoin Ownership Structure

Transitions in the Bitcoin Ownership Structure

In recent months, Bitcoin has shown noticeable changes in ownership structure. Ki Young Ju, CEO of CryptoQuant, claims that the current phase of Bitcoin distribution does not indicate structural weakness, but rather reflects a significant transition of supply from long-standing market participants to U.S. financial institutions and ETFs (exchange-traded funds representing investment portfolios).

Key Points by Ki Young Ju

Ki Young Ju emphasizes the key issue: not so much how much Bitcoin is being sold, but who exactly is absorbing it. He believes that the selling by experienced Bitcoin holders and miners is part of a broader “hand-to-hand” transition, which may ultimately support a new upward cycle.

Institutional Support and Market Consequences

If the new Bitcoin owners are institutions capable of attracting large volumes of liquidity, this could form the basis for the next growth phase. In the last period, major institutional players continue to absorb supplies amidst intense sell-off pressure. Ki also points to the absorption of Bitcoins by large players: as of the start of 2023, 1,240,808 BTC have been purchased.

Comparison with Recent Cycles

When comparing the current situation with previous cycles, a transition of short-term holders to the category of long-term holders is noticeable. Today, they represent 53% of the realized capitalization, compared to 15% two years ago. This may signal the possibility of a new rally, similar to the previous cycle when the market bottomed out.

Impact on Community and Values

However, such a transition does not happen without consequences for the culture and values of the community. Ki notes that institutional investors can provide a more solid foundation for value growth, but part of the cyberpunk values will be lost over time.

Conclusion

Ki Young Ju believes in the possibility of a new upward cycle for Bitcoin. Meanwhile, the success of this transition will depend on the ability of new owners to bring fresh liquidity.

• Strengths: The attraction of institutional capital can support long-term liquidity.
• Risks: Loss of some of the fundamental values of the crypto community.
• Opportunities: Potential market growth due to new investments.
• Threats: Increased selling pressure in conditions of insufficient new liquidity.

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