CryptoQuant CEO Warns Bitcoin Faces Heavy Selling Pressure

Recent market analysis suggests Bitcoin may struggle to regain upward traction in the short term as capital inflows fail to translate into price strength.

Good to Know

• CryptoQuant CEO Ki Young Ju says current conditions do not support a sustained rally.
• Large inflows during 2025 did not prevent a decline in overall market value.
• Analysts warn that persistent selling pressure could trigger broader liquidation cycles.

Ki Young Ju described the market as constrained by excess supply and limited upside catalysts, pointing to data showing that new money entering the ecosystem has not produced the multiplier effect seen in prior cycles.

“In 2024, $10 billion in cash could create $26 billion in BTC book value. In 2025, $308 billion flowed in, yet the market cap fell $98 billion.

Selling pressure is too heavy for any multiplier effect.”

Capital Inflows No Longer Driving Price Expansion

Earlier bull phases often relied on relatively modest liquidity injections to push valuations sharply higher. Current environment shows a different dynamic, where incoming funds are absorbed by existing holders exiting positions rather than fueling fresh accumulation.

Market behavior indicates what analysts call a supply overhang, a condition where available coins for sale outweigh new demand even during periods of strong inflows.

Ju said Bitcoin is “not pumpable right now,” signaling a breakdown in the reflexive relationship between demand and price acceleration.

Concerns Rise Over Nature of Selling Activity

Market participants are also watching closely to determine whether recent distribution reflects routine portfolio rebalancing or stress driven liquidation.

Ju raised concerns about scale and coordination of recent selling, saying:

“Unless this is forced selling, it is hard to see institutions unloading this much supply all at once.. The scary part of forced selling in Bitcoin is that it tends to cascade.”

Forced selling events historically create feedback loops across leveraged positions, mining operations, and retail holdings.

Large drawdowns can pressure leveraged funds, which may trigger automatic liquidations. Declining prices can then reduce profitability for mining operations, tightening margins and potentially forcing asset sales to cover operational costs.

Ju described how those dynamics can spread through the ecosystem.

“As funds get liquidated and prices fall, miners go bankrupt, and even retail investors who held on until the end are forced to cut their losses…”

Such chain reactions can weaken confidence, slow institutional participation, and delay recovery timelines if buying interest fails to stabilize price levels.

Short Term Rebound Seen as Critical Signal

Analysts now focus on whether Bitcoin can establish support within the coming weeks. Lack of stabilization could reinforce fears of structural selling rather than cyclical correction.

Ju did issue a warning:

“If there is no meaningful rebound at these levels within the next month, the risk of structural, cascading institutional selling rises significantly… Rebuilding trust would take a long time.”

Market participants continue monitoring liquidity flows, derivatives positioning, and miner balance sheets as indicators of whether selling pressure will ease or intensify.