Ki Young Ju: “Bitcoin faces higher risk of cascading liquidations if there is no rebound within a month”

Concerns have been raised that cascading liquidations could occur if Bitcoin (BTC) fails to rebound.

Ki Young Ju, CEO of CryptoQuant, said, “If there is no meaningful rebound from this price range over the next month, the risk of structural institutional selling and cascading liquidations could rise significantly.”

Ju added, “Given the volume being dumped onto the market all at once, it’s hard to see institutions simultaneously adding supply unless this is forced selling.”

He continued, “In the Bitcoin market, forced selling often spreads in a chain reaction,” explaining, “As funds are liquidated and prices fall further, mining firms go bankrupt, and even retail investors who held out to the end begin selling to limit losses.”

He also said, “If institutions capitulate at the bottom, there’s a high likelihood they won’t return to the market,” adding, “It will take considerable time to restore confidence.”