Ki Young Ju Says Strategy’s Bitcoin Buying Is Absorbing Liquidity More Than Boosting Prices

Ki Young Ju, chief executive officer of CryptoQuant, said Strategy’s Bitcoin buying is functioning less as a catalyst for price gains and more as a sink for market liquidity.

In a post on X on June 24, Ju said Strategy’s current Bitcoin accumulation is “closer to a liquidity sink than a catalyst that pushes prices higher.” He argued that the company should temporarily halt Bitcoin purchases and rebuild its cash reserves.

Ju said heavy selling pressure in the current market has prevented even Strategy’s large-scale buying from lifting prices. Bitcoin’s realized capitalization has risen by $467 billion over the past two years, while the token’s price has fallen 1% over the same period, he wrote.

“Hundreds of billions of dollars have flowed into the market, yet prices have not risen,” Ju wrote. “In the end, holdings have simply changed hands among investors.”

He also said Strategy’s continued buying may be delaying a natural market correction. The selloff and capitulation typically needed in a bear market, the exit of weak hands and a phase of whale reaccumulation have not fully played out, according to Ju.

Bitcoin has traded sideways in a broad range over the past two years, he said. The market is neither strong enough to confirm a bull run nor weak enough to force full capitulation among investors.

Ju said Strategy should consider halting Bitcoin purchases until it restores its cash reserves and dividend stability, building a systematic model-based buying framework, and setting up a cash-raising and risk-management plan through partial sales in the next bull market.

“Bitcoin’s scarcity is clear, but that does not eliminate the importance of timing,” Ju wrote. “Taking some profit near the top of a cycle is not abandoning Bitcoin. It is risk management.”