Ki Young Ju Says Strategy’s Bitcoin Buying Is Absorbing Liquidity, Not Lifting Prices

Ki Young Ju, chief executive officer of CryptoQuant, said Strategy’s Bitcoin buying strategy is acting less as a catalyst for price gains than as a drain on market liquidity.

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

Ju argued that heavy selling pressure in the current market has kept even Strategy’s large-scale buying from pushing prices higher. Bitcoin’s realized capitalization has risen by $467 billion over the past two years, yet the token’s price has fallen 1% over the same period.

“Hundreds of billions of dollars flowed into the market, but prices did not rise,” he wrote. “In the end, it was only a transfer of holdings among investors.”

He also said Strategy’s continued buying may have delayed the market’s natural correction. In his view, the washout typically seen in a bear market — including panic selling, capitulation, the exit of weak hands and re-accumulation by whales — has not fully played out.

Bitcoin has moved sideways in a broad range for the past two years, Ju said. It is neither strong enough to confirm a bull market nor weak enough to trigger full capitulation among investors.

He said Strategy should consider halting Bitcoin purchases until it restores cash reserves and dividend stability, building a systematic model-based buying framework, and setting up a risk-management system that would allow it to raise cash 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 partial profits near a cycle peak is not abandoning Bitcoin. It is risk management.”