CryptoQuant CEO Ki Young Ju issued a stark warning on February 6, 2026, stating that the risk of a "chain of institutional selling" in cryptocurrency markets could increase significantly if Bitcoin (BTC) does not experience a strong recovery in the short term. Ju's analysis was prompted by sharp movements in spot Bitcoin ETFs, specifically responding to observations from DeFi Development manager Parker White, who suggested that one or more Hong Kong-based non-crypto hedge funds may have been responsible for a notable drop in the iShares Bitcoin Trust (IBIT).
Ju argued that the release of a large amount of Bitcoin into the market at once points to a "forced sell-off" scenario. He outlined a dangerous domino effect: as funds are liquidated, prices fall, creating more selling pressure. This cycle could continue, potentially pushing miners toward bankruptcy risk. Furthermore, Ju noted that even the smallest investors could be forced into panic selling, which would severely disrupt market psychology.
"If Bitcoin fails to achieve a significant rise from current levels in the next month, the risk of structural and chain institutional selling increases significantly," Ju stated. He emphasized the long-term consequences, warning that institutions that "surrender" at the bottom may struggle to re-enter the market, and rebuilding lost trust could take an extended period. The statement concluded with a disclaimer that it does not constitute investment advice.
